📊 International Financial Management
Q. 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.
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✅ Correct Answer: (B) overestimated the future exchange rates over time.

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