A competitive market that allocates funds to their most productive use is called a(n)

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An efficient market is a market in which the prices of securities or assets fully reflect all available information. In an efficient market, funds are allocated to their most productive use as investors have access to all relevant information and are able to make informed decisions about where to invest their funds. Therefore, an efficient market is competitive and allocates funds to their most productive use.

A Competitive Market That Allocates Funds to Their Most Productive