Which of the following theories does not help to explain the why the yield curve follows its traditional shape?
A) the Segmented Markets theory
B) the Rational Expectations theory
C) the Preferred Habitat theory
D) All of these help to explain the yield curve's shape.
Answer: B
Business
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A. Identifying potential fail points B. Constantly improving the quality and reliability of the service C. Creating coupons in case of failure D. Identifying fail points
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When product demand is high, firms following a "middle of the road policy" for long- versus short-term financing will:
A) sell marketable securities B) hold marketable securities C) borrow short-term D) borrow long-term
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