Which of the following statement is correct? Select one: a. All the answers are

Question

Which of the following statement is correct?

Select one:

a. All the answers are incorrect.

b. The simplest form of technical analysis involves the use of PPP.

c. Chartists examine bar charts or use more sophisticated computer-based extrapolation techniques to find recurring price patterns and issue buy or sell recommendations if prices diverge from their past pattern.

d. The interest rate parity in its absolute version states that price levels worldwide should be equal when expressed in a common currency.

e. If inflation is 5% in the United States and 1% in Japan, then the dollar value must rise by about 4% to equalize the dollar price of goods in the two countries according to the relative version of IRP.

Explanation / Answer

Only statement "C" is correct

Statement "B" is incorrect because The simplest form of fundamental analysis involves the use of PPP.

Statement "d" is incorrect because Purchasing Power Parity in its absolute version states that price levels worldwide should be equal when expressed in a common currency.

Statement "E" is incorrect because If inflation is 5% in the United States and 1% in Japan, then the dollar value must rise by about 4% to equalize the dollar price of goods in the two countries according to the relative version of PPP.

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