The Segmented Markets Theory Rejects Two of the Assumptions of the Expectations

question 69

Multiple Choice

The segmented markets theory rejects two of the assumptions of the expectations theory,namely:

• A) there are a large number of financial investors who hold homogeneous expectations about future interest rates and no impediments to market rates moving to equilibrium.
• B) there are no transactions costs and investors hold homogeneous expectations.
• C) that investors are indifferent between short-term or long-term bonds and that all bonds are perfect substitutes.
• D) there is no impediment to market rates moving to equilibrium and the goal of investors is to maximise their expected rate of return.

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Natural stone extracted from quarries around the world used primarily in construction and art for its aesthetic qualities and durability.

Real Property

Land and anything permanently affixed to it, such as buildings, also including rights and interests in the property.

Personal Property

Any property that is not real estate; movable assets including vehicles, furniture, and personal belongings.

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A structure designed primarily for housing offices and workspace for various businesses and organizations.