According to Segmented Markets Theory, If Investors Have Mostly Short-Term

question 22

Multiple Choice

According to segmented markets theory, if investors have mostly short-term funds available and borrowers want long-term funds, there would be ____ pressure on the supply of short-term funds provided by investors and ____ pressure on the yield of long-term securities.

• A)upward; upward
• B)downward; downward
• C)upward; downward
• D)downward; upward

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Definitions:

Midsize-Business

A company that occupies the middle ground in terms of its size and revenue, between small businesses and large corporations.

Registration Requirements

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A company whose primary business involves activities other than investing, reinvesting, owning, holding, or trading in securities.

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A rule of the Securities and Exchange Commission that prohibits the commission of fraud in connection with the purchase or sale of any security.