The Expectations Theory Ignores Several Factors Including the Idea That

question 77

Multiple Choice

The expectations theory ignores several factors including the idea that:

• A) investors may have a preference for investing in longer-term bonds due to the added risk they offer over shorter-term bonds.
• B) investors may have a preference for investing in shorter-term bonds due to the added risk offered by longer-term bonds.
• C) some investors such as pension funds have a desire to match the maturity of their liabilities.
• D) All of the above
• E) both (b) and (c)

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Definitions:

Organizations

Groups or institutions formed for a specific purpose, often to provide a service or advocate for certain issues.

Miscellaneous Itemized Deduction

Miscellaneous itemized deductions include a variety of expenses that can be deducted when computing taxable income, subject to certain limitations and no longer applicable after recent tax reforms for most taxpayers.

Special Treatment

Preferred or unique handling of certain situations or transactions under laws or regulations, often seen in tax codes.

Travel Costs

Expenses incurred for the purpose of traveling, including transportation, accommodation, and meals.