According to the Segmented Markets Theory, If Most Investors Suddenly

question 57

Multiple Choice

According to the segmented markets theory, if most investors suddenly preferred to invest in long-term securities and most borrowers suddenly preferred to issue short-term securities, there would be

• A)upward pressure on the yield of long-term securities .
• B)downward pressure on the yield of short-term securities .
• C)downward pressure on the yield of long-term securities.
• D)no change in the yield of short-term securities.

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