Assume That Debt Maturity Markets Are Segmented, Such That Short-Term

question 68

Multiple Choice

Assume that debt maturity markets are segmented, such that short-term debt markets are funded by surplus units that are different from the surplus units that fund the long-term debt markets.Ifthe Treasury uses a relatively large proportion of ____ debt to finance the deficit, this may place upward pressure on ____ interest rates.

• A) long-term; long-term
• B) long-term; short-term
• C) short-term; long-term
• D) B and C

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Definitions:

Business-to-business Buying

The process where one business purchases goods or services from another business for use in production, operations, or resale.

Organizational Buyers

Entities such as businesses, governments, and institutions that purchase goods and services for use in the production of other goods and services, for resale, or for operations.

E-marketplace

An online platform where buyers and sellers can exchange goods and services, characterized by its ease of access and broad reach.

Independent Trading Communities

Groups or networks of individual traders, investors, or small businesses that operate independently, often focused on specific markets or commodities.