Order Flows and Exchange Rates

question 17

Multiple Choice

Order flows and exchange rates

• A) are correlated in the long run but not in the short run
• B) are correlated because foreign exchange markets have essentially perfect information and assimilate it quickly
• C) are correlated because traders interpret others' purchase orders as a signal to buy
• D) are both determined in the short run by macroeconomic forces
• E) are uncorrelated

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