The three theories cited to explain the general shape of the yield curve are all of the following EXCEPT
A) expectations hypothesis.
B) market segmentation theory.
C) liquidity preference theory.
D) security markets theory.

Question

Quizplus · Accepted Answer

The three theories cited to explain the general shape of the yield curve are expectations hypothesis, market segmentation theory, and liquidity preference theory. Security markets theory is not one of the theories used to explain the shape of the yield curve.

The Three Theories Cited to Explain the General Shape of the Yield