In general, the money markets are widely perceived to be efficient in the sense that the prices reflect all available public information.

Question

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The efficient market hypothesis suggests that financial markets are informationally efficient, meaning that the prices of assets reflect all available information, both public and private. This hypothesis is often applied to the money markets, where short-term debt securities are traded. Thus, money markets are generally considered to be efficient in terms of price discovery. However, there may be exceptions to this rule, as markets can be influenced by behavioral biases, information asymmetries, and other factors that limit the flow of information or distort prices.

In General, the Money Markets Are Widely Perceived to Be