Which One of the Following Statements Is NOT True

question 37

Multiple Choice

Which one of the following statements is NOT true?

• A)Operational efficiency focuses on bringing buyers and sellers together at the lowest possible cost.
• B)If market prices reflect all relevant information about securities at a particular point in time,the market is operationally efficient.
• C)The overall efficiency of a capital market depends on its operational efficiency and its informational efficiency.
• D)All of the above are true.

---

Definitions:

Nominal

Referring to a value expressed in current prices, without adjustment for inflation, as opposed to real values which are adjusted for inflation.

Real Wage

The purchasing power of wages, adjusted for inflation, indicating the quantity of goods and services that can be bought.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, typically used to assess inflation.

Wage Rate

The amount of compensation paid to labor per unit of time, typically expressed as an hourly rate or annual salary.