The Theory for the Term Structure of Interest Rates That

question 80

Multiple Choice

The theory for the term structure of interest rates that says the shape of the yield curve is determined solely by expectations of future interest rates is called the

• A)segmented markets theory.
• B)liquidity premium theory.
• C)pure expectations theory.
• D)theory of rational expectations.

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Definitions:

Algorithm

A step-by-step procedure for calculations, data processing, and automated reasoning tasks.

Sort Method

A function or algorithm that arranges elements of a list or array in a certain order, typically numerical or lexicographical.

General-purpose

Describes software or languages that are designed to be applicable for a wide variety of tasks and problems, rather than specialized for a specific domain.

Sequential Search

Sequential search is a straightforward searching algorithm that checks every element in a list, one at a time and in sequence, until the target element is found or the list ends.