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:

Partnership Tax Return

A partnership tax return is a document filed with the IRS that reports the income, deductions, and losses of a partnership, which are then passed through to the partners to report on their individual returns.