The Theory That Explains Only the Tendency for the Yield

question 22

Multiple Choice

The theory that explains only the tendency for the yield curve to be upward sloping is

• A) expectations hypothesis.
• B) liquidity preference theory.
• C) market segmentation theory.
• D) investor perception theory.

---

Definitions:

Action-oriented

Describes individuals or strategies focused on taking direct and practical steps towards achieving a particular goal or outcome.

Personality Style

Characteristic patterns of thinking, feeling, and behaving that distinguish one individual from another.

Environmental Signals

Information or cues from the environment that indicate changes or trends, relevant to organizations for strategic planning.

Stress Situations

Scenarios that induce a high level of psychological or emotional strain, potentially affecting decision-making processes.