Preferred habitats refers to
A)preferring stocks over bonds.
B)minimal allowance for write-offs.
C)preferred maturities for borrowers and lenders that may lead to market segmentation.
D)investment in newly constructed housing.

Question

Quizplus · Accepted Answer

Preferred habitats refer to the preferred maturities for borrowers and lenders that may lead to market segmentation. This concept is often used in financial markets to describe different investor preferences for certain types of securities, such as short-term treasury bills versus long-term bonds. It describes the phenomenon where investors tend to prefer certain investment maturities or types of securities, leading to segmentation in the market. This can have implications for the prices of securities and the efficiency of the market as a whole.

Preferred Habitats Refers to