Concerning exchange rate forecasting, ____ is a common sense approach based on a wide array of...

Concerning exchange rate forecasting, ____ is a common sense approach based on a wide array of political and economic data.

a		Econometric analysis
b		Technical analysis
c		Judgmental analysis
d		Sunspot analysis

Expert Solution

Answer: Option C – Judgmental Analysis

Explanation: the exchange rate forecasting mainly focussing on predicting the future value of a currency in comparison with other currency. So while forecasting the exchange rate many political factors (e.g. Performance of the Government, Political stability) and economic factors (e.g. Unemployment rate, Inflation rate, GDP growth rate) are to be considered as because they are important determinants and their interrelation is full of complexities. So to study how these economic and political factors causing fluctuation in exchange rate is a scope of judgment analysis. Because judgment analysis helps us to understand the nature of relations of various factors and their magnitude of influence by analysing the past data and trend. Therefore with the help of judgment analysis wide range of political and economic data are required to forecast the exchange rate in general.

Rahul Sunny answered 2 years ago

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