Which of the Following Is TRUE of the Segmented Markets

question 104

Multiple Choice

Which of the following is TRUE of the segmented markets theory?

• A) It assumes that borrowers have particular periods for which they want to borrow.
• B) It assumes that lenders always lend for short periods.
• C) It provides a good explanation for why yield curves usually slope upward.
• D) It assumes that instruments with different maturities are perfect substitutes.

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