According to the Segmented Markets Theory, If Most Investors Suddenly

question 71

Multiple Choice

According to the segmented markets theory, if most investors suddenly preferred to invest in short-term securities and most borrowers suddenly preferred to issue long-term securities, there wouldbe

• A) upward pressure on the price of long-term securities.
• B) upward pressure on the price of short-term securities.
• C) downward pressure on the yield of long-term securities.
• D) A and C

---

Definitions:

Hypnosis

A trance-like state of focused attention and increased suggestibility, often used for therapeutic purposes.

Childhood Memories

Recollections of events or experiences from one's early years, often influencing personality, behaviors, and emotional health.

Infantile Amnesia

The inability of adults to recollect early childhood experiences, typically before the age of 3-4 years.

Tornado

A rapidly rotating column of air that extends from a thunderstorm to the ground, capable of causing significant damage.