Which of the theories explaining the yield curve can explain the slope of the yield curve but cannot explain why it is traditionally upward sloping?
A: the Segmented Markets theory
B: the Expectations theory
C: the Preferred Habitat theory
D: Uncovered Interest Rate parity
A: the Segmented Markets theory
B: the Expectations theory
C: the Preferred Habitat theory
D: Uncovered Interest Rate parity
举一反三
- According to the pure expectations theory, an upward-sloping yield curve implies: A: interest rates are expected to decline in the future. B: interest rates are expected to increase in the future. C: longer-term bonds are riskier than short-term bonds.
- Which of the following is not true? A: Interest rate parity theory links money markets and FX market. B: PPP theory relates the money market and the FX market. C: Fisher open links securities markets to the spot exchange rate market. D: Fisher effect relates goods markets to the securities market.
- According to the interest rate parity theory, the forward currency of countries with a lower interest rate will appreciate.
- Which of the following cannot be used to explain what a theory is like A: An account of the properties that a theory has, B: A description of various features that a theory may have. C: A detailed account of the features of the theory’s content and form. D: An introduction to the contributions made by Einstein to science.
- According to the theory of interest rate parity, if a country raises interest rate, it will cause the local currency to discount in the forward market.