The market segmentation theory suggests that the shape of the ...

[fahad]

The market segmentation theory suggests that the shape of the yield curve is determined by the supply and demand for funds within each maturity segment.
 
  Indicate whether the statement is true or false

Question 2

A flat yield curve indicates generally cheaper long-term borrowing costs than short-term borrowing costs.
 
  Indicate whether the statement is true or false

[vish98]

Answer to Question 1

TRUE

Answer to Question 2

FALSE

[fahad]

Thank you

[vish98]

No problemo