1. Can you provide an example of how the types of market efficiency contribute t
ID: 2721841 • Letter: 1
Question
1. Can you provide an example of how the types of market efficiency contribute to economic growth?
2.How does "insider information" impact market efficiency?
3. There are commercial banks and investment banks. Each obviously has an important role in our economy.
Which of the two types of banks has the task of creating money?
2.How does "insider information" impact market efficiency?
3. There are commercial banks and investment banks. Each obviously has an important role in our economy.
Which of the two types of banks has the task of creating money?
Explanation / Answer
(1) An example showing that the market efficiency contributes to the economic growth is:
The integration of European Union financial market. It facilitates investment, savings, lending, borrowing in such a way that Euro-denominated stock bonds are trending in the world which offers high currency exchange in the international market.
(2) The "insider-information" impacts the market efficiency by making an advance plan for market investment so that the company is ready with funds to put into market. THis helps in time-to-time growth in the market.
(3) The commercial banks have task of creating money. The reason is rise in the exports in the international market. It offers high currency exchange in the market. It helps in generating funds for accomplishing future prospectives in the market.
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