From an Investor's Perspective, If the Foreign Exchange Market Is

question 21

Multiple Choice

From an investor's perspective, if the foreign exchange market is efficient, information about expected changes in exchange rates should be widely known and thus reflected in a firm's market value. Only ________ in exchange rates or an ________ foreign exchange market, should cause market value to change.

• A) expected changes; efficient
• B) unexpected changes; efficient
• C) expected changes; inefficient
• D) unexpected changes; inefficient

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Definitions:

Tone

The general character or attitude of a place, piece of writing, situation, etc., often conveying a specific emotion or mood.

Unity

Using only one idea or topic in a paragraph or other piece of writing.

Transitional Words

Words or phrases used to link ideas, sentences, or paragraphs, helping to create a smooth flow in writing or speech.

Topic Sentence

A sentence that introduces or summarizes the main idea in a paragraph.