Which of the Following Theories Argues That Individual Investors and Financial

question 47

Multiple Choice

Which of the following theories argues that individual investors and financial institutions have specific maturity preferences, and to encourage buyers to hold securities with maturities other than their most preferred requires a higher interest rate?

• A) liquidity premium hypothesis
• B) market segmentation theory
• C) supply and demand theory
• D) unbiased expectations theory

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Definitions:

State Hospitals

Government-run hospitals primarily designed for the care and treatment of individuals with mental health issues.

State Mental Hospitals

Publicly funded institutions that provide mental health care and treatment for people with various psychiatric disorders.

Talk Therapy

A form of psychotherapy that involves discussing thoughts, feelings, and behaviors with a mental health professional to address and manage mental health issues.

Prefrontal Lobotomy

A surgical procedure used in the past to treat certain mental disorders, involving the severing of connections in the brain's prefrontal cortex, now largely discredited due to its serious side effects and ethical concerns.