Discuss the Use of Information by Financial Markets and the Theory

question 86

Essay

Discuss the use of information by financial markets and the theory of market efficiency.Assess the relevance of market efficiency to market traders.

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Definitions:

Loanable Funds

The money available for borrowing in the financial markets, determined by the levels of savings and demand for loans.

Rate of Inflation

The rate of inflation is the pace at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.

Operational Efficiency

The ability of an organization to minimize waste and maximize output with the least input of resources like time, money, and labor.

Public-Sector Managers

Individuals who oversee and lead government agencies, departments, or publicly owned corporations, ensuring the delivery of public services efficiently and effectively.