6) Long-term trends in the exchange rate are caused by ________ factors, while d
ID: 1194990 • Letter: 6
Question
6)
Long-term trends in the exchange rate are caused by ________ factors, while day-to-day volatility is more likely to be the result of ________.
interest rate differentials; technical factors
technical; new products and other fundamental factors
fundamental; changing interest rate differentials
volatile; fundamental factors
interest rate differentials; technical factors
technical; new products and other fundamental factors
fundamental; changing interest rate differentials
volatile; fundamental factors
Explanation / Answer
Long-term trends in the exchange rate are caused by fundamental factors, while day-to-day volatility is more likely to be the result of changing interest rate differentials.