Problem 1 Attempt 1/2 for 10 pts. Part 1 Why do firms forecast exchange rates? Check all that apply: To decide about speculating on exchange rate movements To decide about capital budgeting in other countries To decide about long-term borrowing in foreign currencies To decide about hedging foreign currency cash flows To decide about short-term investments in foreign currencies Submit Problem 2 Attempt 1/2 for 10 pts. Part 1 Which statements are true about technical forecasting? Check all that apply: It uses past exchange rate data. It is the most common method to forecast exchange rate for an MNC. It is based on the relationship between the exchange rate and economic variables such as inflation and interest rates. It usually works only over short time periods. Submit 44 Problem 3 Part 1 Attempt 1/2 for 10 pts. Which statements are true about market-based forecasting? Check all that apply: It uses either the spot rate or the forward rate to predict future exchange rates. It is based on the relationship between the exchange rate and economic variables such as inflation and interest rates. The spot rate is the best predictor of the future exchange rate. It usually works only over short time periods. It uses past exchange rate data. Submit