Which of the Following Theories Explains the Shape of the Yield

question 46

Multiple Choice

Which of the following theories explains the shape of the yield curve?

• A) Expectations theory.
• B) Segmented market theory.
• C) Liquidity or risk premium.
• D) All of the above.

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Definitions:

Nucleophile

A chemical species that donates an electron pair to an electrophile to form a chemical bond.

Curved Arrow Formalism

A notation technique in chemistry representing the movement of electrons during reaction mechanisms.

Electron Pairs

Pairs of electrons occupying the same orbital but having opposite spins; important in bond formation and molecular structure.

Bronsted-Lowry Base

A substance that can accept a proton (H+) from another substance, according to the Bronsted-Lowry acid-base theory.