Liquidity Preference Theory Suggests That for Any Given Issuer, Long-Term

question 183

True/False

Liquidity preference theory suggests that for any given issuer, long-term interest rates tend to be higher than short-term rates due to the lower liquidity and higher responsiveness to general interest rate movements of longer term securities; causes the yield curve to be upward-sloping.

---

Definitions:

Loneliness

A complex and usually unpleasant emotional response to isolation or lack of companionship, which can affect mental and physical health.

Personal Needs

Basic or individual requirements necessary for maintaining physical and emotional well-being.

Quality of Relationships

The degree of satisfaction, emotional connection, and positive dynamics shared between individuals in a relationship.

Self-Esteem

An individual's subjective evaluation of their own worth, encompassing beliefs about oneself as well as emotional states.