AI in Financial Forecasting By A Staff Writer / July 12, 2025 Welcome to your AI in Financial Forecasting Level: Expert What is the primary goal of AI in financial forecasting? To maximize transaction speed To predict future market trends and prices To encrypt financial data To design user interfaces None Which machine learning algorithm is commonly used for time-series forecasting in finance? ARIMA Decision Trees Convolutional Neural Networks Principal Component Analysis None What is sentiment analysis in financial markets? Analyzing the mood of employees Analyzing news and social media to gauge market sentiment Predicting interest rates Monitoring customer satisfaction None How does AI improve risk management in finance? By reducing the number of transactions By identifying patterns and anomalies in financial data By handling manual audits By increasing credit limits automatically None What is one challenge of using AI in financial forecasting? Data privacy and regulatory compliance Lack of market data Limited computational power High error rates in basic calculations None Time's up
