If Foreign Exchange Markets Are Efficient,all of the Following Will

question 29

Multiple Choice

If foreign exchange markets are efficient,all of the following will hold except:

• A) Exchange rates change only when new information arrives.
• B) Exchange rates change randomly.
• C) Incremental changes of exchange rates depend on the current level of the exchange rate.
• D) The current exchange rate reflects all relevant information.

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Definitions:

Employees

Individuals who are hired by a business or organization to perform specific duties in exchange for compensation.

Contrasted

Highlighting the differences or distinctions between two or more items or concepts.

Power Differentials

The varying levels of influence or control between individuals or groups within a given context, often affecting interactions and outcomes.

Avoid Communicating

The deliberate act of withholding information or not engaging in the exchange of ideas and feedback.