Closely Related to the ________ Is the Preferred Habitat Theory,which

question 51

Multiple Choice

Closely related to the ________ is the preferred habitat theory,which takes a somewhat less direct approach to modifying the expectations hypothesis but comes to a similar conclusion.

• A) liquidity premium theory
• B) expectations theory
• C) market segmentation theory
• D) supply theory

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Definitions:

Assignor

A person or entity who transfers obligations along with rights to another party in the context of a legal agreement.

Assignee

A person, company, or entity who is transferred the rights or interests of another's contract or property.

Privity of Contract

A legal principle that asserts a contract cannot bestow rights or impose obligations on any person who is not a party to the contract.

Intended Beneficiary

A third party to a contract whom the contracting parties intended to benefit directly from their contact.