Which of the Following Statements Is Most Correct

question 38

Multiple Choice

Which of the following statements is most correct?

• A) The liquidity preference theory holds that interest rates are determined by the supply of and demand for loanable funds.
• B) The loanable funds theory and the liquidity preference theory are incompatible with each other because one is right and the other is wrong.
• C). Marketable U.S. securities are mainly sold through dealers and have interest payments that are federally taxable.
• D) The market segmentation theory holds that securities of different maturities are perfect substitutes for each other.

---

Definitions:

Product Life Cycle

The progression through successive stages of a product from introduction to growth, maturity, and decline, affecting marketing and management strategies.

Sales Trends

The direction and movement in sales performance over a specified period of time, providing insight into consumer behavior and market demand.

Niche Consumers

A select group of consumers with very specific preferences and needs that are different from the larger market.