________ techniques are typically based on formal economic models of exchange rate determination.

Question

Quizplus · Accepted Answer

Fundamental analysis techniques use economic models to analyze factors such as interest rates, inflation, trade balances, and political events to predict future exchange rates. Technical analysis focuses on past price and volume data, while exchange rate forecasting involves using a variety of methods to predict future exchange rates. Mean absolute error is a statistical measure used to evaluate forecast accuracy.

________ Techniques Are Typically Based on Formal Economic Models of Exchange