The Market Segmentation Theory States That Interest Rates on Debt

question 1

Multiple Choice

The market segmentation theory states that interest rates on debt vary dependent upon market segments which are segmented based upon which one of the following?

• A)time to maturity
• B)principal amount
• C)use of funds
• D)type of lender
• E)type of borrower

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Definitions:

Prescriptions

Authorized directions provided by a licensed healthcare practitioner for the preparation and administration of a remedy or treatment.

Proscriptions

Rules or laws that forbid certain actions or behaviors.

Crowd

A temporary gathering of people in a public place; members might interact but do not identify with each other and will not remain in contact.

Aggregate

A collection or sum of many individual elements, items, or variables often used in the context of data analysis or statistics.