Which of the Following Statements Is Most Correct

Multiple Choice

Which of the following statements is most correct?

A) The liquidity preference theory holds that interest rates are determined by the supply of and demand for loanable funds.
B) The loanable funds theory and the liquidity preference theory are incompatible with each other because one is right and the other is wrong.
C) . Marketable U.S. securities are mainly sold through dealers and have interest payments that are federally taxable.
D) The market segmentation theory holds that securities of different maturities are perfect substitutes for each other.