Which of the following is a TRUE statement about stock markets?
A) Economists can make above-average profits in the stock market because of their specialized knowledge of economics.
B) It is always better to buy growth stocks than the older and more stable blue-chip stocks.
C) The stock market on average over time is random and totally unrelated to the performance of the economy.
D) It is illegal for a friend of a corporate executive to make large profits in the stock market by using his inside information.
Answer: D
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Fluctuations in the current account balance are mainly the result of fluctuations in
A) net interest. B) net exports. C) foreign reserves. D) net transfers. E) imports of capital.
A simple deposit multiplier equal to one implies a required reserve ratio equal to
A) 100 percent. B) 50 percent. C) 25 percent. D) 0 percent.