The Three Theories Cited to Explain the General Shape of the Yield

question 145

Multiple Choice

The three theories cited to explain the general shape of the yield curve are all of the following EXCEPT

• A) expectations hypothesis.
• B) market segmentation theory.
• C) liquidity preference theory.
• D) security markets theory.

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Definitions:

Attentively

This describes paying close and careful attention to something, being alert and focused.

Opposites Attract

The theory that individuals are attracted to others who have different personalities, interests, or physical traits than their own, complementing each other's qualities.

Change One's Behavior

The process of modifying personal actions, habits, or reactions, often to improve oneself or adapt to new conditions or expectations.

Social Allergy Effect

A process by which repeated exposure to irritating behavior in close relationships leads to increasingly intense negative reactions over time.