The Segmented Markets Theory

question 77

Multiple Choice

The segmented markets theory

• A)explains upward-sloping yield curves as resulting from the demand for long-term bonds being high relative to the demand for short-term bonds.
• B)explains upward-sloping yield curves as resulting from the demand for long-term bonds being low relative to the demand for short-term bonds.
• C)explains upward-sloping yield curves as resulting from the favorable tax treatment of long-term bonds.
• D)is unable to account for upward-sloping yield curves.

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Definitions:

Misrepresentation

An untrue statement of fact; an incorrect or false representation.

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A sum of money placed in an account or given as security for the fulfillment of a contractual obligation.

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Provisions in a contract that release one party from liability for harm caused, typically found in waiver and release agreements.

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