According to the Liquidity Preference Theory is t
According to the Liquidity Preference Theory, is the term structure of interest rates most likely related to:
A. expectations about future rates.
B. interest rate risk.
C. both expectations about future rates and interest rate risk.
参考解答
4j8***102
2024-11-14 22:51:15
Ans:C;C is correct because the liquidity preference theory believe that in addition to expectations about future short-term rates, investors require a risk premium for holding longer term bonds. Therefore, the term structure of interest rates is related to both expectation about future rates and interest rate risk.
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