Concerning exchange-rate determination,"market fundamentals" include all of the following except:
A) Monetary policy and fiscal policy
B) Profitability and riskiness of investments
C) Speculative opinion about future exchange rates
D) Productivity changes affecting production costs

Question

Quizplus · Accepted Answer

Market fundamentals refer to economic factors that affect the supply and demand of currencies, such as monetary and fiscal policies, productivity changes affecting production costs, and the profitability and riskiness of investments. Speculative opinions about future exchange rates are not considered market fundamentals.

Concerning Exchange-Rate Determination,"market Fundamentals" Include All of the Following Except