In Some Time Periods, There Is Evidence That Corporations Initially

question 57

Multiple Choice

In some time periods, there is evidence that corporations initially financed long-term projects with short-term funds. They planned to borrow long-term funds once interest rates were lower. Thisspecifically supports the ____ for explaining the term structure of interest rates.

• A) liquidity premium theory
• B) expectations theory
• C) segmented markets theory
• D) A and C

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Definitions:

Distal Goals

Long-term objectives or aims that are not immediately achievable, requiring extended effort and planning.

Proximal Goals

Short-term goals that are set as steps towards a longer-term goal, making it easier to track progress and maintain motivation.

Demands Upon Themselves

The expectations or pressures individuals put on themselves, either to achieve certain goals or adhere to specific standards.

Capacity For Change

The active phase of self-regulation; willpower.