Concerning exchange rate forecasting,____ relies on econometric models which are based on macroeconomic variables likely to affect currency values.
A) Fundamental analysis
B) Technical analysis
C) Judgmental analysis
D) Sunspot analysis

Question

Quizplus · Accepted Answer

Fundamental analysis relies on econometric models that use macroeconomic variables such as interest rates, inflation rates, and trade balances to predict future exchange rate movements. Technical analysis uses historical price and volume data to predict future exchange rate movements, judgmental analysis relies on expert opinions and qualitative information, and sunspot analysis is a theory that solar activity can influence economic and financial cycles.

Concerning Exchange Rate Forecasting,____ Relies on Econometric Models Which Are