The Three Theories Cited to Explain the General Shape of the Yield

question 155

Multiple Choice

The three theories cited to explain the general shape of the yield curve are all of the followingEXCEPT

• A) the security markets theory.
• B) the market segmentation theory.
• C) the liquidity preference theory.
• D) the expectations hypothesis.

---

Definitions:

Thought Record

A cognitive behavioral therapy tool used to capture, evaluate, and challenge negative thought patterns.

Fear Hierarchy

A fear hierarchy is a list of feared situations or objects that are arranged in descending order according to how much they evoke anxiety. This list is then used in therapy for exposure exercises.

Response Prevention

A behavioral treatment technique, particularly used in treating OCD, where the patient is prevented from performing a compulsive behavior.

Systematic Desensitization

A behavioral therapy technique used to reduce phobic responses or anxiety through gradual exposure to the feared object or situation coupled with relaxation exercises.