2. If I use the market approach to exchange rate forecasting, which of the following would I use to

predict future spot rates.

a. Past spot rates

b. GNP differences between countries

c. Forward Rates

d. Todays rate is the expected future rate

e. Charting techniques

3. A large government deficit relative to GDP, a high rate of money expansion accompanied by

fixed exchange rates, along with substantial government expenditures are some of the common

characteristics of _________ risk.

a.exchange rate

b.interest rate

c.country

d.investment