Which of statements a) through c) is FALSE?
A) Attempts to forecast short term changes in exchange rates generally fail to beat a naive guess of today's spot exchange rate.
B) Long run forecasts of nominal exchange rates have difficulty beating the current spot rate as predictors of future spot rates of exchange.
C) Prices in the interbank foreign exchange markets are difficult to predict.
D) More than one of the above is true.
E) All of the above are false.
Correct Answer:
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