Which Hypothesis Explains Why the Yield Curve Is Often 'Lumpy

question 25

Multiple Choice

Which hypothesis explains why the yield curve is often 'lumpy' or 'humped'?

• A) Market variability
• B) Expectation
• C) Market segmentation
• D) Liquidity preference

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Definitions:

Takings Clause

A clause within the Fifth Amendment to the U.S. Constitution that bars the government from appropriating private land for public benefit without providing adequate payment.

Public Use

The use of land or property for purposes that benefit the public, often a key consideration in eminent domain cases.

Procedural Due Process

Legal principle requiring fair treatment through the normal judicial system, especially as a citizen's entitlement.

Substantive Due Process

A principle allowing courts to protect certain rights deemed fundamental from government interference, even where procedural protections are present or where those rights are not specifically mentioned elsewhere in the Constitution.