Which of the Following Is True of the Market Segmentation

question 16

Multiple Choice

Which of the following is true of the market segmentation theory?

• A)According to the market segmentation theory, the shape of the yield curve depends on investors' expectations about future inflation rates.
• B)According to the market segmentation theory, the yield curve can only be upward sloping at any given time.
• C)According to the market segmentation theory, lenders prefer to make short-term loans rather than long-term loans.
• D)According to the market segmentation theory, the yield curve can only be flat at any given time.
• E)According to the market segmentation theory, the slope of the yield curve depends on supply/demand conditions of a security in the long- and short-term markets.

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Definitions:

Fibroblasts

A type of cell found in connective tissue which produces collagen and other fibers.

Leukocytes

White blood cells that are part of the immune system, protecting the body against both infectious disease and foreign invaders.

Retroviruses

A group of RNA viruses that insert a DNA copy of their genome into the host cell in order to replicate, e.g., HIV.

Invading Organisms

Pathogens, such as bacteria, viruses, and parasites, that enter the body and cause various diseases or infections.