"Equilibrium" Models of the Term-Structure

question 11

Multiple Choice

"Equilibrium" models of the term-structure

• A)Are general equilibrium models of all securities in the economy.
• B)Are models which match observed term structure curves perfectly.
• C)Include such models as Vasicek (1977)and Cox,Ingersoll,and Ross (185).
• D)Are models which ensure that "disequilibrium" phenomena,such as negative interest rates,cannot occur.

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