If Exchange Markets Were Not Efficient, It Would Pay for a Firm

question 33

True/False

If exchange markets were not efficient, it would pay for a firm to spend resources on forecasting exchange rates.

---

Definitions:

Overconfidence

A cognitive bias characterized by an individual's overestimation of their knowledge, ability, or control over situations.

Decision-making Strategies

Approaches or plans developed to select the best among alternatives based on specific criteria, aimed at achieving the most favorable outcome.

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a given person's mind when considering a specific topic or decision.

Congress

The national legislative body of a country, particularly in the United States, it is composed of the House of Representatives and the Senate.