An "Efficient Capital Market" Is One Where

question 100

Multiple Choice

An "efficient capital market" is one where:

• A)companies can easily and efficiently raise capital when needed.
• B)regulatory bodies are doing a good job of controlling the sale of publicly available stock securities.
• C)stock prices are set by the law of supply and demand.
• D)stock market prices fully reflect all information available to the public.

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Definitions:

Interest Rate

The amount charged, expressed as a percentage, by a lender to a borrower for the use of assets over a specific period of time.

Investment

The allocation of resources, usually financial, in expectation of generating an income or profit in the future.

Money Supply

The overall financial resources quantity in an economy at a specified time.

Interest Rate

The percentage of a sum of money charged by a lender to a borrower for the use of money, typically expressed as an annual percentage.