Which Theory of Term Structure Posits That Long-Term Rates Are

question 34

Multiple Choice

Which theory of term structure posits that long-term rates are a geometric average of current and expected short-term interest rates?

• A)The unbiased expectations theory.
• B)The liquidity premium theory.
• C)The loanable funds theory.
• D)The market segmentation theory.
• E)None of the above.

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Definitions:

Product Life Cycle

Defines the stages that new products move through as they enter, get established in, and ultimately leave the marketplace and thereby offers marketers a starting point for their strategy planning.

Maturity Stage

Stage of the product life cycle when industry sales reach their peak, so firms try to rejuvenate their products by adding new features or repositioning them.

Self-Concept

The image a person has of himself or herself; a component of psychographics.

End Goal

The final desired outcome or objective that an individual, group, or organization is aiming to achieve.