An analyst has developed a model to predict the euro spot price for the next quarter. Her forecasting model is based on the hypothesis that the expected change in the future real interest rate can explain the change in spot price. Evaluate each of the following statements (True or False).

1. The analyst should collect data on nominal interest rates, instead of relying on estimates of real interest rates.
2. The analyst should make a judgement when identifying the timing of the impact of real interest rates on exchange rates.
3. The analyst could improve her forecasting model by incorporating other known determinants, in addition to real interest rates, that also influence exchange rates.