The _____________ market school argues that forward exchange rates do the best possible job of forecasting future spot exchange rates,so investing in exchange rate forecasting services would be a waste of time.

Question

Quizplus · Accepted Answer

The efficient market school suggests that forward exchange rates are the best predictors of future spot exchange rates. This means that there is no point in investing in exchange rate forecasting services as the market has already incorporated all available information into the forward rates. Therefore, choice A, efficient, is the correct answer.

The _____________ Market School Argues That Forward Exchange Rates Do