Fundamental forecasting requires that factors directly affecting the supply and demand of a currency be identified.These direct factors can include:
A)interest rate,money supply and productivity.
B)efficiency of markets and government policies.
C)the presence of the gold standard and government support of its currency.
D)the price of commodities and government policies toward exports.

Question

Quizplus · Accepted Answer

Interest rate, money supply, and productivity are fundamental factors that directly affect the supply and demand of a currency. The efficiency of markets and government policies, the presence of the gold standard, and government support of its currency do not directly affect the supply and demand of a currency. The price of commodities and government policies toward exports may indirectly affect supply and demand through their impact on productivity and trade balance.

Fundamental Forecasting Requires That Factors Directly Affecting the Supply and Demand