<u>Full question:</u>
Because financial markets are ____, securities buyers and sellers do not have full access to information and cannot always break down securities to the precise size they desire.
a. efficient
b. inefficient
c. perfect
d. imperfect
<u>Answer:</u>
Because financial markets are imperfect, securities buyers and sellers do not have full access to information and cannot always break down securities to the precise size they desire.
<u>Explanation:</u>
An imperfect market is an entirety in which specific buyers and sellers can affect costs and production, where there is no complete revealing of information about goods and costs, and where there are huge obstacles to approach or exit in the business.
Imperfect markets do not satisfy the precise measures of a possible absolutely or competing market. If financial businesses were perfect, all erudition about any protection for trade-in prime and subsequent businesses would be continuously and openly accessible to investors.