Which One of the Following Theories States That the Term

question 97

Multiple Choice

Which one of the following theories states that the term structure of interest rates reveals the financial market's projections of future interest rates?

• A)market rate theory
• B)market yield theory
• C)Fisher hypothesis
• D)expectations theory
• E)rational rate hypothesis

---

Definitions:

Equivalent Ratio

A ratio obtained from another ratio by multiplying each term by the same number, or by dividing each term by the same number.

Smallest Term

In mathematics, it refers to the term of minimal value in a sequence or among a set of terms.

Exchange Rate

The rate at which one currency can be exchanged for another, often fluctuating due to economic factors.

Canadian Dollars

The official currency of Canada, often symbolized as CAD or $, used in financial transactions within and outside of Canada.