Author Question: The theory suggesting that for any given issuer, long-term interest rates tends to be higher than ... (Read 125 times)

oliviahorn72 · **on:** Jul 11, 2018

The theory suggesting that for any given issuer, long-term interest rates tends to be higher than short-term rates is called ________.

A) expectation hypothesis
B) liquidity preference theory
C) market segmentation theory
D) interest parity theory

Question 2

A yield curve that reflects relatively similar borrowing costs for both short-term and long-term loans is called as ________.

A) normal yield curve
B) inverted yield curve
C) flat yield curve
D) lognormal curve