Which Term-Structure Hypothesis Suggests That Any Long-Term Interest Rate Simply

question 11

Multiple Choice

Which term-structure hypothesis suggests that any long-term interest rate simply represents the geometric mean of current and future on-year interest rates expected to prevail over the maturity of the issue?

• A) Expectations hypothesis
• B) Liquidity preference hypothesis
• C) Segmented market hypothesis
• D) Preferred habitat hypothesis
• E) Hedging pressure hypothesis

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Expressive Behavior

Spontaneous and seemingly purposeless behavior, usually displayed without our conscious awareness.

Mastery

The process of acquiring complete knowledge or skill in a subject or activity, often associated with high competence and achievement.

Secondary Traits

Personality characteristics that are more situation-specific and less central to the individual's personality than primary traits.

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