The Existence of an Upward Sloping Yield Curve Proves That

question 44

Multiple Choice

The existence of an upward sloping yield curve proves that the _____ is correct, because an upward sloping curve necessarily implies that lenders will lend short-term funds at lower rates than they lend long-term funds.

• A) liquidity preference theory
• B) expectations theory
• C) market segmentation theory
• D) open market theory
• E) reinvestment theory

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Definitions:

Linkage Disequilibrium

A situation in genetics where alleles at different loci are associated more frequently than expected by chance alone.

Heritable Trait

A characteristic or feature of an organism that can be passed from parent to offspring through genetic information.

Selection Differential

Selection differential is a measure of the strength of phenotypic selection. The selection differential describes the difference between the mean of the reproducing members of the population that contribute offspring to the next generation and the mean of all members of a population.

Quantitative Trait

A measurable phenotype that varies among individuals over a given range to produce a continuous distribution of a phenotype. Quantitative traits are sometimes called complex traits; they’re also sometimes called polygenic traits because their variation can be attributed to polygenic effects (that is, the cumulative action of many genes).