According to the Unbiased Expectations Theory

question 9

Multiple Choice

According to the unbiased expectations theory,

• A)markets are segmented and buyers stay in their own segment.
• B)liquidity premiums are negative and time varying.
• C)the term structure will most often be upward sloping.
• D)the long-term spot rate is an average of the current and expected future short-term interest rates.
• E)forward rates are less than the expected future spot rates.

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Definitions:

Lateral Hypothalamus

Part of the hypothalamus gland in the brain, believed to control hunger and thirst by regulating the body's perception of the need to eat or drink.

Pancreas

A glandular organ in the digestive and endocrine system of vertebrates, producing enzymes and hormones such as insulin to aid in digestion and blood sugar regulation.

Weight Gain

An increase in body weight. This can result from the accumulation of body fat, muscle mass, or fluid retention.

Insulin Levels

The concentration of insulin in the bloodstream, which is central in regulating carbohydrate and fat metabolism in the body.