The theory suggesting that for any given issuer, long-term ...

[oliviahorn72]

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

[Jmfn03]

Answer to Question 1

B

Answer to Question 2

C

[oliviahorn72]

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