Which of the Following Statements About Segmented Markets Theory of Term

question 84

Multiple Choice

Which of the following statements about segmented markets theory of term structure is correct?

• A) It assumes that lenders always lend for short periods.
• B) It assumes that borrowers have particular periods for which they want to borrow.
• C) It gives a good explanation of why yield curves usually slope upward.
• D) It assumes that all bonds are perfect substitutes for each other.

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Definitions:

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A type of thinking marked by persistent beliefs that are contradicted by reality or rational argument, typically observed in psychotic disorders.

Schizotypal

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