Which of the following forecasting techniques would be most likely to use relationships between economic factors and exchange rate movements to forecast the future exchange rate?
A) fundamental forecasting
B) market-based forecasting
C) technical forecasting
D) mixed forecasting

Question

​Which of the following forecasting techniques would be most likely to use relationships between economic factors and exchange rate movements to forecast the future exchange rate?
A) ​fundamental forecasting
B) ​market-based forecasting
C) ​technical forecasting
D) ​mixed forecasting

Quizplus · Accepted Answer

Fundamental forecasting techniques utilize a variety of economic factors, such as GDP, inflation and interest rates, to determine the future value of a currency. In this case, economic factors would be used to forecast the future exchange rate, making fundamental forecasting the best choice. Market-based forecasting utilizes past price data and trends to predict future prices, while technical forecasting uses statistical analysis to identify patterns and trends. Mixed forecasting combines multiple forecasting techniques.

​Which of the Following Forecasting Techniques Would Be Most Likely

Which of the Following Forecasting Techniques Would Be Most Likely