Program Trading Decreases Market Efficiency by Exaggerating Price Discrepancies Between

question 47

True/False

Program trading decreases market efficiency by exaggerating price discrepancies between the cash and futures markets.

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Definitions:

GDP

Gross domestic product, a monetary measure of the market value of all final goods and services produced in a country during a specific period.

Federal Expenditures

The spending by the federal government of a country, typically on public services, defense, welfare programs, and infrastructure.

Transfer Payments

Payments made by the government to individuals without any expectation of a direct return service or goods, such as social security benefits.