H12-711_V3.0 Exam Questions and Answers

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NEW QUESTION: 1
Which theory about the term structure of interest rates is correct?
A. The expectations hypothesis contends that the long-term rate is equal to the expected short-term rate.
B. That the segmented markets hypothesis contends that borrowers and lenders prefer particular segments of the yield curve.
C. The expectations hypothesis indicates that investors have varying opinions about future interest rates.
D. The liquidity premium hypothesis assumes investors will give up yield to lock in longer-term interest rates.
Answer: B


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