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:

Atypical Behavior

Behavior that deviates significantly from the norm within a society or cultural context, often suggesting the presence of psychological or developmental issues.

Socioeconomic Status (SES)

A person’s position in society as determined by income, occupation, education, and place of residence. (Sometimes called social class.)

Political Values

The set of beliefs and ideological principles that guide an individual's preferences and opinions about political policies and candidates.

Cohorts

groups of people banded together or treated as a group, often used in research to study changes across different age groups over time.