Which of the following is correct?
A)Reported accounting numbers do not affect the transfer of resources.
B)Credit rating agencies use accounting information to assess their assets.
C)Efficient capital markets promote productivity and encourage innovation.
D)Efficient capital markets promote productivity but do not encourage innovation.

Question

Quizplus · Accepted Answer

Efficient capital markets promote productivity by ensuring that resources flow to the most productive uses, thereby encouraging innovation in the economy.

Which of the Following Is Correct