According to the Expectations Theory of the Term Structure,the Interest

question 26

Multiple Choice

According to the expectations theory of the term structure,the interest rate on a long-term bond will equal the ________ of the short-term interest rates that people expect to occur over the life of the long-term bond.

• A)average
• B)sum
• C)difference
• D)multiple

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Definitions:

Maslow's Hierarchy

A psychological theory proposed by Abraham Maslow that outlines a five-tier model of human needs, from basic physiological needs to self-actualization.

Esteem

The respect and admiration that an individual receives from others, often linked to self-confidence and self-value.

Motivational Factors

Elements or conditions that inspire individuals to act or behave in a certain way to achieve desired objectives.

Maintenance Factors

are aspects or activities required to keep a system, equipment, or process operating smoothly and effectively.