Which of These Is NOT a Theory That Explains the Shape

question 4

Multiple Choice

Which of these is NOT a theory that explains the shape of the term structure of interest rates?

• A) liquidity theory
• B) market segmentation theory
• C) short-term structure of interest rates theory
• D) unbiased expectations theory

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Definitions:

Absorption

The process by which substances are taken up by a tissue, such as the absorption of nutrients by the intestines.

Vitamin C

A water-soluble vitamin found in various foods, necessary for the growth, development, and repair of all body tissues, and functioning as an antioxidant.

Cyanocobalamin

is a synthetic form of vitamin B12 used to treat and prevent B12 deficiency and related conditions.

Folic Acid

A water-soluble B vitamin that is crucial in the synthesis of nucleic acid and the formation of red blood cells, often recommended during pregnancy.