Concerning exchange rate forecasting, ____ involves the use of historical exchange rate data to estimate future values, while ignoring the economic determinants of exchange rate movements.
A) econometric analysis
B) judgmental analysis
C) technical analysis
D) sunspot analysis

Question

Quizplus · Accepted Answer

Technical analysis involves the use of historical exchange rate data to estimate future values, while ignoring the economic determinants of exchange rate movements. Econometric analysis uses statistical models to analyze economic trends and determine their impact on currency values. Judgmental analysis involves relying on expert opinions and qualitative assessments to forecast exchange rates. Sunspot analysis is a theory that suggests that sunspot activity can influence economic activity and consequently, exchange rates.

Concerning Exchange Rate Forecasting, ____ Involves the Use of Historical