According to the liquidity premium theory of interest rates,
a. investors prefer certain maturities and will not normally switch out of those maturities.
b. investors are indifferent between different maturities if the long-term spot rates are equal to the average of current and expected future short-term rates.
c. long-term spot rates are higher than the average of current and expected future short-term rates.
d. the term structure must always be upward sloping. long-term spot rates are totally unrelated to expectations of future short-term rates.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “According to the liquidity premium theory of interest rates, a. investors prefer certain maturities and will not normally switch out of ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Pretend you are a sociologist studying global inequality by looking at child labor manufacturing Barbie dolls in China. What do you focus on? How will you find this information? What theoretical perspective might you use?
Answers (1)
Pareto optimality is the condition in which A) the distribution of income is equal. B) no change is possible that will make some members of society better off without making at least one other member of society worse off.
Answers (1)
Do Debit cards often have a higher intrest rate then credit cards?
Answers (2)
n much of the United States and Canada, logging takes place in both privately owned and government-owned forests. a. Privately owned forests are: private, nonrival, and excludable. public, rival, and excludable. private, rival, and nonexcludable.
Answers (2)
Wright & Boyle Inc. had the following income statement for the month of May: Sales revenue $470,800.00 Cost of goods sold 217,766.40 Gross margin $ 253,033.60 Less: $86,199.20 Selling expenses Administrative expenses 74,942.
Answers (1)
New Questions in Business
Tyler returned $500 worth of merchandise within the discount period. The entry to record the return is which of the following? A. Debit Purchases for $500; credit Accounts Payable $500 B.
Answers (1)
Identify the examples of abilities. Check all that apply. Kelvin is good at giving speeches. Elaine knows how to drive a car. Wilma would like to study history. Ira was raised in a Jewish family. Cam can run for long distances.
Answers (2)
An estimate of an asset's value to the company, calculated by discounting the future cash flows from the investment at the project's required rate of return and then subtracting the initial amount of the investment, is known as: A) Unamortized
Answers (1)
A physical count of supplies on hand at the end of May for Masters, Inc. Indicated $1,245 of supplies on hand. The general ledger balance before any adjustment is $2,050.
Answers (2)
How were civil rights problems in northern cities similar to those in the south?
Answers (1)