Which Theory That Suggests That Investors Typically Prefer More Liquid

question 22

Multiple Choice

Which theory that suggests that investors typically prefer more liquid, shorter-term bonds?

• A) preferred habitat.
• B) the yield curve.
• C) liquidity preference.
• D) none of the above.

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Definitions:

Large Purchasers

Entities or individuals who buy goods or services in substantial volumes, often securing discounted prices or advantageous terms.

Environmental Spoiling

The degradation or destruction of natural environments due to human activities or natural disasters.

Unpleasant Person

An individual whose behavior, attitude, or personality traits are found to be disagreeable or offensive by others.

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Patterns of expectations, needs, and emotions one exhibits in interpersonal relationships, influenced by early interactions with caregivers.