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erica [24]
3 years ago
5

What would a follower of the market segmentation theory say about the supply and demand for​ long-term loans versus the supply a

nd demand for​ short-term loans given the yield curve in part c​? ​(Select the best answer​ below.) A. Market segmentation theorists would argue that the upward slope is due to the fact that under current economic conditions there is greater demand for​ long-term loans for items such as real estate than for​ short-term loans for seasonal needs. B. Market segmentation theorists would argue that the upward slope is due to the fact that under current economic conditions there is a smaller demand for​ long-term loans for items such as real estate than for​ short-term loans for seasonal needs. C. Market segmentation theorists would argue that the downward slope is due to the fact that under current economic conditions there is greater demand for​ long-term loans for items such as real estate than for​ short-term loans for seasonal needs. D. Market segmentation theorists would argue that the upward slope is due to the fact that under current economic conditions there is greater demand for​ short-term loans for items such as real estate than for​ long-term loans for seasonal needs.
Business
2 answers:
adoni [48]3 years ago
8 0

Answer:

Market segmentation theorists would argue that the upward slope is due to the fact that under current economic conditions there is greater demand for​ long-term loans for items such as real estate than for​ short-term loans for seasonal needs.

Correct option A

Explanation:

Market segmentation theory is based on the belief that the market for each segment of bond maturities consists mainly of investors who have a preference for investing in securities with specific durations: short, intermediate, or long-term.

Market segmentation theory asserts that the buyers and sellers who make up the market for short-term securities have different characteristics and motivations than buyers and sellers of intermediate and long-term maturity securities.

Followers of the market segmentation theory would say that the slope upward is evidence that the market has a greater demand for long term loans as opposed to short term loans.

finlep [7]3 years ago
5 0

Answer: The answer is A

Explanation:

The market segmentation theory states that there is no relationship whatsoever between the long term interest rate and the short term interest rate in the financial market .In the sense that ,the long term loan or bond are secured from capital market while short term loan can be secured from the money market. As a result of these the interest rate of one does not have effect on the other one. Another fact of the issue is that the investors in the market are not the same.

The yield curve is a line which shows the relationship between interest rate on a loan or bond and the time for such loan or bond to reach their maturity. Therefore, the upward slope is due to the fact that under current economic conditions there is a greater demand for long term loans for such items such as real estate than for short term loans for seasonal needs.

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Answer: Attraction

Explanation:

Companies that engage in marketing by attraction, carryout marketing of a product in such a way that the product they are trying to sell attracts the attention of the consumers. In marketing by attraction the marketers tries to draw the consumer to the product by engaging them, which is achieved by gaining the consumers attention.

7 0
3 years ago
The HR manager of SuperGlam, an online discount fashion retailer, wanted to redesign the workflow in customer service, order ful
GrogVix [38]

Answer:

Job analysis skills.

Explanation:

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In the above question, it can be seen that the HR of Superglam is trying to determine duties and employee requirement to enable efficiency of employees in their job posts.

Cheers.

8 0
3 years ago
Because of the difference between the discipline imposed by market competition and the discipline imposed by political decisions
Cloud [144]

Answer:

Difficulty managing public investment so it's done in a cost effective way

Explanation:

An Economy

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Factors of production includes land, labor, capital, and entrepreneurship.

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3 years ago
It has been a great year at Capital Funding, Inc., an SEC-registered broker-dealer that is also registered in 22 states. The com
sergey [27]

Answer:

Option D would be the appropriate alternative.

Explanation:

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Other choices available aren't connected to that same scenario in the statement. So the answer here is just the perfect one.

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3 years ago
Which of the following statements is true? Group of answer choices If current Real GDP is greater than Natural Real GDP, the eco
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Answer: Wages are flexible if the economy is self-regulating.

Explanation:

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For this to happen, inputs such as wages have to flexible to enable them to adjust to market conditions and thus take the Economy back to equilibrium.

For instance, if there is a recession, wages will reduce so that the prices that the producers can charge will reduce as well which will enable supply to match demand and bring the economy back to equilibrium.

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