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.

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Definitions:

Held-to-Maturity Debt Securities

Financial instruments such as bonds that a company intends and is able to hold until they mature, rather than trading them.

Amortized Cost Basis

An accounting method that gradually reduces the cost value of a tangible or intangible asset through periodic amortization charges.

Fair Value

Fair value is the price at which an asset would be bought or sold in an orderly transaction between market participants at the measurement date.

GAAP Accounting

A set of accounting standards and practices known as Generally Accepted Accounting Principles, used primarily in the United States to ensure financial reporting consistency and transparency.