Which of the following statements is correct?
A. Other things held constant,the "liquidity preference theory" would generally lead to an upward sloping yield curve.
B. Other things held constant,the "market segmentation theory" would generally lead to an upward sloping yield curve.
C. Other things held constant,the "expectations theory" would generally lead to an upward sloping yield curve.
D. Other things held constant,the yield curve under "normal" conditions would be horizontal (i.e., flat).
E. Other things held constant,a downward sloping yield curve would suggest that investors expect interest rates to increase in the future.
Answer: A
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The memorized sales presentation may focus on benefits unimportant to the prospect.
Answer the following statement true (T) or false (F)
Years ago, the travel industry was controlled by a few large travel companies that booked holidays, air tickets, bus tickets, and hotels for their customers. However, with the emergence of the internet, smaller travel agencies started mushrooming in the industry and customers started making their own reservations. Which of the following can be inferred from this information?
A. The travel industry changed from a consolidated structure to a fragmented one. B. The bargaining power of buyers in the travel industry has decreased. C. The pricing power of the incumbent firms in the travel industry has increased. D. The structure of the travel industry changed from monopolistic competition to an oligopolistic one.
A cyclical stock is one that
A) is often traded by market speculators. B) varies its dividends frequently. C) often has management changes. D) might operate in the capital goods industries.
_____ indicate the cash a firm spends, or other assets it uses up, to carry out the business activities necessary to generate its revenue.
A. Stockholders' equities B. Remissions C. Expenses D. Accounts receivable