Good, inexpensive, and fairly reliable predictors of future exchange rates include
A) today's exchange rate.
B) current forward exchange rates (e.g. the six-month forward rate is a pretty good predictor of the spot rate that will prevail six months from today) .
C) esoteric fundamental models that take an econometrician to use and no one can explain.
D) both a and b
Correct Answer:
Verified
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