The ____ theory states that investors choose a particular maturity based on the type of business they are in.
A) Market segmentation
B) Liquidity preference
C) Preferred habitat
D) Harrod-Keynes
E) Term structure

Question

Quizplus · Accepted Answer

The market segmentation theory suggests that investors have specific maturity preferences based on their business needs, leading them to choose particular maturities.

The ____ Theory States That Investors Choose a Particular Maturity