A Level of Market Efficiency in Which All Relevant Information

question 21

Multiple Choice

A level of market efficiency in which all relevant information both public and private is fully and immediately reflected in security prices is called a ______ efficient market.

• A) strong-form
• B) semistrong-form
• C) weak-form
• D) perfect-form

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Definitions:

Crude Quantity Theory

A basic concept in economics that suggests the amount of money in circulation determines the level of economic activity, affecting prices and inflation.

M Rises

An increase in the money supply in an economy, which can affect inflation and interest rates.

Q Falls

Indicates a decrease in the quantity demanded or supplied of a good or service, often in response to changes in price, income, or other factors.

GDP

Gross Domestic Product, the total market value of all final goods and services produced within a country in a given period.