Monetary and Asset or Portfolio Models Have Not Been Very

question 1

Multiple Choice

Monetary and asset or portfolio models have not been very successful in forecasting exchange rates,especially in the short run,due to which of the following reasons?

• A)Exchange rates are strongly affected by new information that is characteristically unpredictable
• B)Although offering theoretical support for the conclusions drawn by the models,the models are weak econometrically speaking
• C)Expectations of exchange market participants often become self-fulfilling
• D)Both A & C

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Definitions:

Surface Anatomy

The study of external anatomical features without dissection, facilitating the identification of muscles, bones, and organs beneath the skin.

Histology

The examination of tissues and organs at the microscopic level to understand their structure.

Tissue Specimen

A sample of tissue taken for medical examination or study to understand diseases or conditions.

Frozen

The state of a substance being solidified by low temperatures.