__________ Suggests That the Long-Term Interest Rate Is the Geometric

question 23

Multiple Choice

__________ suggests that the long-term interest rate is the geometric average of the present short-term rate and the short-term rates expected to prevail over the term to maturity of the long-term security.

• A)The term structure of interest rates
• B)The geometric average theory
• C)The expectations theory
• D)The preferred habitat theory

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