SIE (Securities Industry Essentials) Practice Exam

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Which of the following is NOT a type of economic theory?

Keynesian economics
Monetarism
Supply-side economics
Efficient market hypothesis

The correct answer is: Efficient market hypothesis

The Efficient Market Hypothesis is not a type of economic theory because it does not focus on explaining or influencing economic activity. Instead, it is a theory in finance that suggests that financial markets are efficient and accurately reflect all available information, making it impossible to consistently outperform the market. In contrast, Keynesian economics, Monetarism, and Supply-side economics are all economic theories that seek to explain and influence economic activity.