The ________ theory is the most widely accepted theory of the term structure of interest rates because it explains the major empirical facts about the term structure so well.

The ________ theory is the most widely accepted theory of the term structure of interest rates because it explains the major empirical facts about the term structure so well.



A) liquidity premium
B) market segmentation
C) expectations
D) none of the above


Answer: A) liquidity premium


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Marketing Chapter 5

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