If a Particular Currency of a Developed Country Is Consistently

Multiple Choice

If a particular currency of a developed country is consistently declining substantially over time, then a market-based forecast of that currency will usually have:

A) underestimated the future exchange rates over time.
B) overestimated the future exchange rates over time.
C) forecasted future exchange rates accurately.
D) forecasted future exchange rates inaccurately but without any bias toward consistent underestimating or overestimating.