According to the ____, Long-Term Interest Rates Are a Function

question 4

Multiple Choice

According to the ____, long-term interest rates are a function of expected short-term interest rates.

• A) maturity theory
• B) expectations theory
• C) market segmentation theory
• D) preferred habitat theory

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Definitions:

Agency by Operation of Law

A legal principle that creates an agency relationship due to circumstances or law rather than an agreement between the agent and principal.

Charges

Fees or financial obligations imposed by an entity for services rendered or as penalties for non-compliance with laws or regulations.

Account

A record summarizing the financial transactions pertaining to a specific period or purpose, such as savings or checking in a bank.

Agency by Ratification

A situation where actions taken by a person who is not officially an agent are approved and accepted by the principal after the fact, thereby creating an agency relationship.