Examples of a business motivation for long-run exchange rate forecasts include all but which of the following?
A) a major capital investment in a foreign country
B) the desire to hedge a 90-day security
C) a portfolio manager considering investing in foreign securities
D) All of the above are examples of a business motivation for long-run exchange rate forecast.

Question

Quizplus · Accepted Answer

A 90-day security is a short-term investment and would not require a long-run exchange rate forecast. The other options, such as a major capital investment in a foreign country and a portfolio manager considering investing in foreign securities, would require long-run exchange rate forecasts to make informed decisions.

Examples of a Business Motivation for Long-Run Exchange Rate Forecasts