Which of the following is true of the market segmentation theory?
A. According to the market segmentation theory, the shape of the yield curve depends on investors' expectations about future inflation rates.
B. According to the market segmentation theory, the yield curve can only be upward sloping at any given time.
C. According to the market segmentation theory, lenders prefer to make short-term loans rather than long-term loans.
D. According to the market segmentation theory, the yield curve can only be flat at any given time.
E. According to the market segmentation theory, the slope of the yield curve depends on supply/demand conditions of a security in the long- and short-term markets.
Answer: E
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The transfer of duties under a contract is called an assignment.
Answer the following statement true (T) or false (F)
On January 1, Year 1, Jones Company issued bonds with a $170,000 face value, a stated rate of interest of 7.0%, and a 5-year term to maturity. The bonds were issued at 98. Interest is payable in cash on December 31st of each year. The company amortizes bond discounts and premiums using the straight-line method.What is the amount of interest expense shown on Jones' income statement for the year ending December 31, Year 1?
A. $11,900 B. $11,220 C. $13,260 D. $12,580
The principal ledger that contains all the balance sheet and income statement accounts is the general ledger
Indicate whether the statement is true or false
The key management practices that drove job control unionism included all of the following except:
A. Management insistence on maintaining sole authority over traditional management practices B. Narrow job classifications C. Minimal employee input into decision making D. Restrictive systems of reward based on job seniority