The Segmented Markets Theory Can Explain

question 110

Multiple Choice

The segmented markets theory can explain

• A)why yield curves usually tend to slope upward.
• B)why interest rates on bonds of different maturities tend to move together.
• C)why yield curves tend to slope upward when short-term interest rates are low and to be inverted when short-term interest rates are high.
• D)why yield curves have been used to forecast business cycles.

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Definitions:

Franchisor

One licensing another (the franchisee) to use the owner’s trademark, trade name, or copyright in the selling of goods or services.

Prospective Franchisees

Individuals or entities considering the acquisition of franchise rights to operate a business under the franchisor's brand and system.

State Approval

Formal consent given by a governmental entity authorizing an action, policy, or regulation to take effect.

Sole Proprietorship

A type of business structure where a single individual owns, manages, and is responsible for all aspects of the business, including debts.