Under Liquidity Preference Theory, Which of the Following Is Always

question 5

Multiple Choice

Under liquidity preference theory, which of the following is always true? choose one)

• A) The forward rate is higher than the spot rate when both have the same maturity.
• B) Forward rates are unbiased predictors of expected future spot rates.
• C) The spot rate for a certain maturity is higher than the par yield for that maturity.
• D) Forward rates are higher than expected future spot rates.

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Definitions:

Net Sales

Net sales are the total revenue from goods or services sold by a company, minus returns, allowances for damaged or missing goods, and discounts.