1 Describe corporate motives for currency forecasting.
2 If foreign-exchange markets are perfectly efficient, why should no one pay for the services of currency forecasting firms?
3 Most empirical studies have found that foreign-exchange markets are at least weak-form efficient. Does this mean that investors can earn extra profits by using technical analysis?
4 Explain fundamental analysis as a technique for forecasting exchange rates.
5 Explain technical analysis as a technique for forecasting exchange rates.
6 Explain the market-based forecast as a technique for forecasting exchange rates.
7 How can we assess performance in forecasting exchange rates?
8 In the early 1990s, some former Eastern-bloc countries allowed the exchange rates of their currencies to fluctuate against the dollar. Would the use of fundamental analysis be useful for forecasting the future exchange rates of these currencies?
9 Explain the events that would force the par value to change.
10 A general rule suggests that in a fixed-rate system, the forecaster ought to focus on the government decision-making structure. Explain.
11 Why do the central banks of countries with flexible exchange rate systems intervene in the foreign-exchange market?
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