Which of these is NOT a theory that explains the shape of the term structure of interest rates?

Question

Quizplus · Accepted Answer

The "short-term structure of interest rates theory" is not a recognized theory explaining the shape of the term structure of interest rates. The other options, liquidity theory, market segmentation theory, and unbiased expectations theory, are all established theories that offer explanations for how and why interest rates vary for different maturities.

Which of These Is NOT a Theory That Explains the Shape