Which of the Following Are Possible Explanations for the Term

question 35

Multiple Choice

Which of the following are possible explanations for the term structure of interest rates?

• A) The expectations theory
• B) The liquidity preference theory
• C) Modern portfolio theory
• D) The expectations theory and the liquidity preference theory

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Definitions:

Self-actualization

Self-actualization is the realization or fulfillment of one's talents and potentialities, considered as a drive or need present in everyone.

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An American psychologist best known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs.

Sensation Seeker

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A physiological and psychological state of being awake or reactive to stimuli, often associated with increased cognitive activity and physical readiness.