Exchange rates one year in advance are typically forecasted with almost perfect accuracy for the major currencies, but not for currencies of smaller countries.

Question

Quizplus · Accepted Answer

Exchange rates are inherently difficult to predict accurately even for major currencies, let alone for currencies of smaller countries. The forecasts for exchange rates are usually influenced by various factors such as economic trends, political events, and market sentiment, which makes it challenging to predict them with certainty. Therefore, the statement that exchange rates one year in advance are forecasted with almost perfect accuracy for major currencies is false.

Exchange Rates One Year in Advance Are Typically Forecasted with Almost