Which of the Following Is Not Proposed as an Explanation

question 23

Multiple Choice

Which of the following is not proposed as an explanation for the term structure of interest rates

• A)The expectations theory
• B)The liquidity preference theory
• C)The safety of principal theory
• D)Modern portfolio theory
• E)The expectations theory and the liquidity preference theory

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Definitions:

American Philosopher

A scholar originating from the United States who engages in the study of fundamental questions about existence, knowledge, values, reason, mind, and language.

Austrian Physician

Likely refers to Sigmund Freud, the founding father of psychoanalysis, though there are many other notable Austrian physicians.

Wilhelm Wundt

Wilhelm Wundt was a German physiologist, philosopher, and professor, known as one of the founders of modern psychology, who established the first psychology laboratory at the University of Leipzig in 1879.

Humanistic Psychology

Humanistic psychology is an approach to psychology that emphasizes individual potential for growth and the importance of self-actualization and psychological well-being.