Question

What is the purpose of Exchange Rate Forecasting for business entities?

a.

To determine historical exchange rates

b.

To make predictions for future exchange rates

c.

To analyze current exchange rates

d.

To calculate spot rates

Answer: (b).To make predictions for future exchange rates Explanation:Exchange Rate Forecasting is essential for making predictions about future exchange rates, aiding decisions in investment, capital budgeting, financing, and trade transactions.

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Q. What is the purpose of Exchange Rate Forecasting for business entities?

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