Which of the Following Is NOT an Assumption of Market

question 34

Multiple Choice

Which of the following is NOT an assumption of market efficiency?

• A) Instruments denominated in other currencies are perfect substitutes for one another.
• B) Transaction costs are low or nonexistent.
• C) All relevant information is quickly reflected in both spot and forward exchange markets.
• D) All of the above are true.

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Definitions:

Potential Problems

Refers to issues or challenges that could occur in the future, impacting the success or efficiency of plans, projects, or operations.

Task Interdependence

The extent to which the work performed by one individual or group affects and is affected by the work of other individuals or groups.

Performance Contributions

The efforts or input by individuals or groups that significantly impact the success or outcomes of a project or organization.

Self-managing Work Team

A group of employees tasked with managing their own workflows, responsibilities, and schedules without direct supervision.