In Some Time Periods, There Is Evidence That Corporations Initially

Multiple Choice

In some time periods, there is evidence that corporations initially financed long-term projects with short-term funds. They planned to borrow long-term funds once interest rates were lower. This specifically supports the ____ for explaining the term structure of interest rates.

A) liquidity premium theory
B) expectations theory
C) segmented markets theory
D) liquidity premium theory AND segmented markets theory