The Theory of Efficient Markets Suggests That ________

question 167

Multiple Choice

The theory of efficient markets suggests that ________.

• A) interest rates and inflation rates are inversely related
• B) systemically important financial institutions are more likely to fail
• C) all movements in stock markets are based on rational appraisals of new information
• D) long-term investments by banks are more profitable than short-term investments

---

Definitions:

Psychosocial Benefits

Positive effects derived from social and interpersonal interactions that contribute to overall well-being.

Psychological Disorders

Patterns of behavioral or psychological symptoms that impact multiple areas of life, are distressing to the individual, and are considered deviant by the culture.

Same-Sex Married Couples

Partners of the same sex who are legally married to each other.

Genetic Predisposition

An inherited genetic pattern that increases the likelihood of developing a particular disease or trait.