Which of the Following Statements Is True

question 137

Multiple Choice

Which of the following statements is true?

• A) The long- term interest rates are the sum of the current short- term interest rate and the expected future short- term rates.
• B) The short- term interest rates are the average of the current long- term interest rate and the expected future short- term rates.
• C) The long- term interest rates are independent of the current short- term interest rate and the expected future short- term rates.
• D) The long- term interest rates are the average of the current short- term interest rate and the expected future short- term rates.