Concerning exchange rate forecasting, ____ relies on econometric models that 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 macroeconomic variables such as interest rates, inflation, and economic growth to forecast exchange rates. Technical analysis uses past market data to predict future price movements, judgmental analysis relies on expert opinions, and sunspot analysis is based on the theory that sunspot activity affects financial markets.

Concerning Exchange Rate Forecasting, ____ Relies on Econometric Models That