The Expectations Theory

question 82

Multiple Choice

The expectations theory

• A)has difficulty explaining why U.S. Treasury securities have lower yields than corporate bonds.
• B)has difficulty explaining why yields on bonds of different maturities move together.
• C)has difficulty explaining why yield curves usually slope upward.
• D)accounts well for the fact that yield curves usually slope upward.

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Definitions:

Fibrinogen

A protein found in plasma that is important for blood clotting.

Plasma Protein

Proteins found in blood plasma that perform various functions including clotting, defense against pathogens, and transport of substances.

Blood Clotting

A complex process involving platelets and clotting factors to prevent excessive bleeding when the vascular system is injured.