Two Major Theories Have Evolved to Account for These Observed

question 30

Multiple Choice

Two major theories have evolved to account for these observed shapes of the yield curve: ________.

• A) the expectations theory and the market segmentation theory.
• B) the pure expectations theory and the liquidity theory.
• C) the expectations theory and the liquidity theory.
• D) the liquidity theory and the preferred habitat theory.

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Definitions:

Gametophyte

The sexual phase in the life cycle of plants and algae that produces gametes.

Gymnosperm

Type of woody seed plant in which the seeds are not enclosed by fruit and are usually borne in cones, such as those of the conifers.

Cycad

Type of gymnosperm with palmate leaves and massive cones; cycads are most often found in the tropics and subtropics.

Classified

Categorized or organized into groups based on shared characteristics or attributes.