Econ 3030 - Money, Banking and the Economy » Fall 2021 » Quiz 4

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Question #1
According to Efficient Market Hypothesis (EMH), it is difficult to beat the market on average, no matter how much you try.
A.   FALSE
B.   TRUE
Question #2
According to the Term Structure of Interest Rates, the yield curve tends to slope _______.
A.   down and then up
B.   up
C.   up and then up
D.   down
Question #3
Financial Crises are better explained by __________.
A.   EMH
B.   the Term Structure
C.   the Federal Reserve
D.   Behavioral Economics
Question #4
Buy and Hold strategy is practiced by, among others,
A.   S & P Index Funds
B.   Day traders
C.   advisement news letter writers
D.   active fund managers
Question #5
According to EMH, if you possess insider information, you can potentially beat the market.
A.   TRUE
B.   FALSE
Question #6
Choose the odd one out from below
A.   Rational Expectations
B.   Random Walk
C.   Technical Analysis
D.   EMH
Question #7
If you believe in the Efficient Market Hypothesis, you are __________ to pay for investment advisors' newsletters.
A.   likely
B.   100 % likely
C.   very likely
D.   not likely
Question #8
If you are optimistic about the future of the U.S. economy, your liquidity premium for long term maturity investments is likely to be ____________, since you are more confident about getting your money back from your investments in the future.
A.   small and then large
B.   smaller
C.   random
D.   larger
Question #9
In an efficient market, you are not likely to beat the market by studying the past patterns of the stock price movements.
A.   TRUE
B.   FALSE
Question #10
Your diligent stock research is more likely to reap big benefits in an inefficient market, rather than in an efficient market.
A.   FALSE
B.   TRUE

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