Given a Choice Between 5-Year and 1-Year Instruments Most People

question 3

Multiple Choice

Given a choice between 5-year and 1-year instruments most people would choose 5-year instruments when borrowing and 1-year instruments when lending. Which of the following is a theory consistent with this observation?

• A) Expectations theory
• B) Market segmentation theory
• C) Liquidity preference theory
• D) Maturity preference theory

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Definitions:

Competencies

The skills, knowledge, and abilities that enable a person to perform tasks effectively.

Necessary Skills

Essential abilities required to effectively perform a task or job, often within a specific context like therapeutic practice.

Client Factors

Characteristics of a client that may influence the counseling process, including history, personality, and current circumstances.

Extratherapeutic Factors

These are elements outside of therapy itself that can influence a client's healing process, such as personal strengths, social support, and environmental factors.