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:

American Ideals

The fundamental beliefs and values that are considered foundational to American society, including liberty, democracy, equality, and justice.

Anita Whitney

An American political activist involved in early 20th-century movements for social and labor reforms, later convicted under the California Criminal Syndicalism Act.

Fourteenth Amendment

Ratified in 1868, this amendment to the U.S. Constitution granted citizenship to all persons born or naturalized in the United States, including formerly enslaved people, and provided equal protection under the laws.

Supreme Court

The highest federal court in the United States, with ultimate appellate jurisdiction over all federal and state court cases that involve a point of federal law.