If a Particular Currency Is Consistently Declining Substantially Over Time

Multiple Choice

If a particular currency is consistently declining substantially over time, then a market-based forecast 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.