Three theories commonly used to explain the term structure of interest rates are the expectations theory, the liquidity preference theory, and the market segmentation theory.
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Q43: Default risk is the risk that a
Q44: The expectations theory contends that the shape
Q45: The default risk premium is the compensation
Q46: Treasury securities that may be bought and
Q47: Speculative inflation is caused by the expectation
Q49: Treasury bonds are government securities issued with
Q50: Investment grade bonds have ratings of Aaa
Q51: Junk bonds are bonds that have a
Q52: Administrative inflation is the tendency of prices,
Q53: Cost-push inflation during economic expansions when demand
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