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 using past trends and patterns in exchange rate data to predict future values, without considering economic factors that might influence exchange rates. Econometric analysis, on the other hand, considers economic variables such as inflation rates and interest rates when predicting exchange rates. Judgmental analysis relies on expert opinions and intuition, while sunspot analysis is based on the theory that sunspot activity affects exchange rates.

Concerning Exchange Rate Forecasting,____ Involves the Use of Historical Exchange