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.

---

Definitions:

Malnourished Children

Young individuals suffering from inadequate nutrition, which significantly impacts their physical and cognitive development.

Personal Freedom

Personal freedom refers to the rights of individuals to make choices and live their lives without undue restrictions or interference from others or the government, encompassing freedoms of speech, action, and thought.

Greenwich Village

A neighborhood in Lower Manhattan, New York City, known for its vibrant arts scene, bohemian lifestyle, and as a historic center of LGBTQ+ culture.

Labor Radicals

Individuals or groups advocating for drastic or revolutionary changes in labor practices and policies, often focused on workers' rights and social equality.