Which of the following is NOT an assumption of market efficiency?
A) Instruments denominated in other currencies are perfect substitutes for one another.
B) Transaction costs are low or nonexistent.
C) All relevant information is quickly reflected in both spot and forward exchange markets.
D) All of the above are true.
Answer: D
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Select ALL of the following statements that are false:
a. Money is a store of value, even if its purchasing power is relatively unstable over time. b. The ease with which an asset can be exchanged for money or other assets is referred to as liquidity. c. Credit money is any circulating medium which has little intrinsic value relative to its monetary value. d. In the future, electronic funds transfer systems may be used to such an extent that a virtually checkless society may result.
Wally Kramer, Saskatchewan farmer, wished to buy an additional 160 acres, but didn't have the money. He borrowed it from his uncle Chester and gave Chestera mortgage on the addition
Chester didn't have legal advice and neglected to register the mortgage. Wally found the mortgage payments too much for him, so he sold the new land to his neighbour, Phil Hazel. Phil registered the deed. Can Chester now enforce the mortgage against Phil? A) Yes, a mortgage runs with the land. B) Yes, the mortgage was in writing and dated before the deed C) No, Chester's mortgage was not registered D) Yes, Phil had constructive notice of the mortgage. E) both A and B