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:

Cloud Services

Internet-based services that provide computing resources like software, storage, and processing power, without the need for local infrastructure.

Optical Storage

A type of data storage that uses optical media, such as CDs and DVDs, to read and write data using lasers.

Flash Drive

A portable storage device that uses flash memory and is commonly used for data storage, backup, and transfer.

Hard Drives

Storage devices used to save and retrieve digital information using one or more rigid rapidly rotating disks coated with magnetic material.