Which One of the Following Statements Is Correct Concerning Market

question 21

Multiple Choice

Which one of the following statements is correct concerning market efficiency?

• A)A firm will generally receive a fair price when it sells shares of stock.
• B)In an efficient market, some market participants will have an advantage over others.
• C)If a market is efficient, arbitrage opportunities should be common.
• D)Real asset markets are more efficient than financial markets.
• E)New information will gradually be reflected in a stock's price to avoid any sudden change in the price of the stock.

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Definitions:

Deposit

A sum of money placed in an account or given as security for a financial transaction or agreement.

Checking Account

A bank account that allows the holder to write checks, use electronic debit, and make deposits, meant for frequent transactions.

Improperly Dishonors

Refers to the situation where a financial institution wrongfully refuses to accept a valid check or draft presented for payment.

Drawer

In banking, the person who writes or creates a check or draft instructing the bank to pay the stated amount to a third party.