It's a true or false question

37. DEVIATIONS FROM PPP EXIST BECAUSE EXCHANGE RATE MOVEMENTS ARE NOT DRIVEN SOLELY BY A CHANGE IN THE DIFFERENTIAL BETWEEN US INFLATION RATE AND THE FOREIGN COUNTRY'S INFLATION 38. NEED TO CONSIDER THE CHANGE IN THE DIFFEREENTIAL BETWEEN US INTEREST RATE AND FOREIGN NATIONS PLUS CHANGE IN THE US INCOME LEVEL AND FOREIGN NATIONS PLUS CHANGE IN GOVT CONTROLS PLUS CHANGE IN EXPECTATIONS OF FUTURE EXCHANGE RATES, THEREFORE, EXCHANGE RATE MOVEMENTS CANNOT BE AS SIMPLE AS PPP THEORY SUGGESTS. 39. AN MNCS FORECASTS OF EXCHANGE RATE MOVEMENTS DO NOT INFLUENCE ITS MANAGERIAL DECISIONS. 40. FORECASTING EXCHANGE RATES IS NOT A DIFFICULT TASK 41. FIRMS FORECAST EXCHANGE RATES TO HEDGE DECISIONS, FOR SHORT TERM INVESTMENT DECISIONS, FOR CAPITAL BUDGETING DECISIONS, FOR EARNINGS ASSESSMENTS AND FOR LONG TERM FINANCING DECISIONS 42. THE NUMEROUS METHODS AVAILABLE FOR FORECASTING EXCHANGE RATES CAN BE CATEGORIZED INTO 4 GROUPS- TECHNICAL, FUNDAMENTAL, MARKET BASED AND MIXED. 43. FUNDAMENTAL FORECASTING INVOLVES THE USE OF HISTORICAL EXCHANGE RATE DATA TO PREDICT FUTURE VALUES. 44. TECHNICAL FORECASTING IS CITED AS THE MAIN TECHNIQUE USED BY INVESTORS WHO SPECULATE IN F/X MARKET. 45. TECHNICAL FORECASTS ARE LESS USEFUL FOR MNCS THAT REQUIRE A LONG RANGE FORECAST OF EXCHANGE RATES. 46. IN A WEAK FORM EFFICIENT MARKET, HISTORICAL RATE INFORMATION IS NOT USEFUL FOR FORECASTING EXCHANGE RATE MOVEMENTS 47. FUNDAMENTAL FORECASTING IS BASED ON RELATIONSHIPS BETWEEN ECONOMIC VARIABLES SUCH AS INFLATION, INTERST RATES, INCOME LEVELS AND EXCHANGE RATES. 48.USE OF PPP THEORY CAN BE UTILIZED FOR FUNDAMENTAL FORECASTING 49. MARKET BASED FORECASTING IS USUALLY BASED ON EITHER THE SPOT RATE OR THE FORWARD RATE TO FORECAST THE SPOT RATE AT SOME FUTURE POINT IN TIME. 50. SINCE NO SINGLE FORECASTING TECHNIQUE HAS BEEN FOUND TO BE CONSISTENTLY SUPERIOR TO THE OTHERS, SOME MNCs PREFER TO USE A COMBINATION OF FORECASTING TECHNIQUES. THIS APPROACH IS REFERRED TO AS MIXED FORECASTING. 37. DEVIATIONS FROM PPP EXIST BECAUSE EXCHANGE RATE MOVEMENTS ARE NOT DRIVEN SOLELY BY A CHANGE IN THE DIFFERENTIAL BETWEEN US INFLATION RATE AND THE FOREIGN COUNTRY'S INFLATION 38. NEED TO CONSIDER THE CHANGE IN THE DIFFEREENTIAL BETWEEN US INTEREST RATE AND FOREIGN NATIONS PLUS CHANGE IN THE US INCOME LEVEL AND FOREIGN NATIONS PLUS CHANGE IN GOVT CONTROLS PLUS CHANGE IN EXPECTATIONS OF FUTURE EXCHANGE RATES, THEREFORE, EXCHANGE RATE MOVEMENTS CANNOT BE AS SIMPLE AS PPP THEORY SUGGESTS. 39. AN MNCS FORECASTS OF EXCHANGE RATE MOVEMENTS DO NOT INFLUENCE ITS MANAGERIAL DECISIONS. 40. FORECASTING EXCHANGE RATES IS NOT A DIFFICULT TASK 41. FIRMS FORECAST EXCHANGE RATES TO HEDGE DECISIONS, FOR SHORT TERM INVESTMENT DECISIONS, FOR CAPITAL BUDGETING DECISIONS, FOR EARNINGS ASSESSMENTS AND FOR LONG TERM FINANCING DECISIONS 42. THE NUMEROUS METHODS AVAILABLE FOR FORECASTING EXCHANGE RATES CAN BE CATEGORIZED INTO 4 GROUPS- TECHNICAL, FUNDAMENTAL, MARKET BASED AND MIXED. 43. FUNDAMENTAL FORECASTING INVOLVES THE USE OF HISTORICAL EXCHANGE RATE DATA TO PREDICT FUTURE VALUES. 44. TECHNICAL FORECASTING IS CITED AS THE MAIN TECHNIQUE USED BY INVESTORS WHO SPECULATE IN F/X MARKET. 45. TECHNICAL FORECASTS ARE LESS USEFUL FOR MNCS THAT REQUIRE A LONG RANGE FORECAST OF EXCHANGE RATES. 46. IN A WEAK FORM EFFICIENT MARKET, HISTORICAL RATE INFORMATION IS NOT USEFUL FOR FORECASTING EXCHANGE RATE MOVEMENTS 47. FUNDAMENTAL FORECASTING IS BASED ON RELATIONSHIPS BETWEEN ECONOMIC VARIABLES SUCH AS INFLATION, INTERST RATES, INCOME LEVELS AND EXCHANGE RATES. 48.USE OF PPP THEORY CAN BE UTILIZED FOR FUNDAMENTAL FORECASTING 49. MARKET BASED FORECASTING IS USUALLY BASED ON EITHER THE SPOT RATE OR THE FORWARD RATE TO FORECAST THE SPOT RATE AT SOME FUTURE POINT IN TIME. 50. SINCE NO SINGLE FORECASTING TECHNIQUE HAS BEEN FOUND TO BE CONSISTENTLY SUPERIOR TO THE OTHERS, SOME MNCs PREFER TO USE A COMBINATION OF FORECASTING TECHNIQUES. THIS APPROACH IS REFERRED TO AS MIXED FORECASTING