The Market Segmentation Theory of the Term Structure of Interest

question 2

Multiple Choice

The market segmentation theory of the term structure of interest rates

• A) theoretically can explain all shapes of yield curves.
• B) definitely holds in the "real world".
• C) assumes that markets for different maturities are separate markets.
• D) a and b.
• E) a and c.

---

Definitions:

Superego

The component of the human psyche in Freudian psychoanalysis that is responsible for moral standards and self-criticism.

Id

In psychoanalytic theory, part of the psyche associated with instinctual drives and desires, operating on the pleasure principle.

Libido

A term used in psychoanalytic theory to denote the sexual drives or energies associated with the survival and reproduction instincts.

Sexual Development

The process of physical and emotional changes that occur as a person matures sexually, including puberty and the development of sexual orientation.