If the Market Is Weak Form Efficient

question 35

Multiple Choice

If the market is weak form efficient:

• A)semistrong form efficiency holds.
• B)strong form efficiency must hold.
• C)semistrong form efficiency may hold.
• D)markets are not weak form efficient.
• E)None of the above.

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Definitions:

Federal Funds Rate

The interest rate at which banks and credit unions lend reserve balances to other depository institutions overnight, on an uncollateralized basis.

Reserve Requirement

A regulatory mandate on banks to hold a certain percentage of their deposits in reserve either in their vaults or at the central bank.

Excess Reserves

The capital reserves held by a bank or financial institution in excess of what is required by regulators, creditors, or internal controls.

Money Supply

The total amount of monetary assets available in an economy at a specific time, including currency and various types of bank deposits.