Multiple Choice
According to the segmented markets theory, if most investors suddenly preferred to invest in short-term securities and most borrowers suddenly preferred to issue long-term securities, there wouldbe
A) upward pressure on the price of long-term securities.
B) upward pressure on the price of short-term securities.
C) downward pressure on the yield of long-term securities.
D) A and C
Correct Answer:
Verified
Correct Answer:
Verified
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