According to the liquidity premium theory
A) investors prefer longer to shorter maturities.
B) investors prefer shorter to longer maturities.
C) investors are indifferent between short and long maturities.
D) investors are more interested in the tax treatment of bonds than they are in the liquidity of bonds.
B
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What factors make inheritances a source of increased economic inequality?
What will be an ideal response?
Which of the following is NOT an advantage of a futures contract over a forward contract?
A) reduced counterparty risk B) increased flexibility C) lower information cost D) increased liquidity
If the citizens of a country were to work harder and take less leisure time, it would
a. shift the production possibilities curve outward. b. cause an economy to operate inside its production possibilities curve. c. shift the production possibilities curve inward. d. cause an economy to move from one point on the production possibilities curve to another point on the curve.
Data for the United States suggests that about how many millionaires inherited their fortunes?
a. one in seven b. one in five c. one in three d. one in two