Which of the Following Would a Follower of the Inefficient

question 101

Multiple Choice

Which of the following would a follower of the inefficient market school of thought agree with?

• A) Companies would be better off investing in foreign exchange forecasting services.
• B) Forward exchange rates do the best possible job of forecasting future spot exchange rates.
• C) Companies can optimize their foreign exchange transactions by using forward markets.
• D) Forward rates reflect all available information about likely future changes in exchange rates.

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Definitions:

Dysregulation

An impaired ability to regulate emotional responses or processes, often leading to psychological distress.

Severe Unipolar Depression

A major depressive disorder characterized by a persistent and profound sadness or lack of interest in external stimuli, without the manic episodes seen in bipolar disorder.

Learned Helplessness

a condition in which a person suffers from a sense of powerlessness, arising from a traumatic event or persistent failure to succeed, leading to decreased motivation and depression.

Martin Seligman

A psychologist known for his work on learned helplessness, positive psychology, and interventions that can prevent depression.