Which of the Following Statements Is NOT True

question 25

Multiple Choice

Which of the following statements is NOT true?

• A) Forward exchange rates reflect all relevant publicly available information at any given time.
• B) Forward exchange rates are perfect predictors of future exchange rates.
• C) A market is efficient if prices of financial instruments quickly reflect new public information made available to traders.
• D) There is always a certain amount of deviation between forward and actual exchange rates.

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Definitions:

Bankruptcy

A judicial process relating to an individual or company that cannot settle their due obligations.

Chapter 11 Reorganization

Chapter 11 Reorganization refers to a provision under the U.S. bankruptcy code that allows a business to restructure its debt and operations in order to return to profitability under court supervision while continuing to operate.

Stockbrokers

Professionals who buy and sell stocks and other securities on behalf of clients, usually for a fee or commission.

Corporate Debtors

Businesses that owe money to creditors and are responsible for repaying debt.