Which Theory Explains All Three Facts About the Term Structure

question 37

Multiple Choice

Which theory explains all three facts about the term structure?

• A) expectations
• B) segmented markets
• C) preferential treatment
• D) liquidity premium

---

Definitions:

DSM-IV

The fourth edition of the Diagnostic and Statistical Manual of Mental Disorders, a guideline used for diagnosing and classifying mental disorders.

Mental Illness

A broad range of mental health conditions that affect mood, thinking, and behavior.

Diagnosing

The process of identifying a disease or condition from its symptoms and signs.

Psychiatrists

Medical doctors who specialize in diagnosing, treating, and preventing mental, emotional, and behavioral disorders.