12.Which of the following statements correctly describes a theory of the term structure of interest rates?

A.The expectations theory is based on consumer expectations of credit card rates.

B.The liquidity preference theory is based on the assumption that the more liquidity in the market, the higher the interest rates.

C.The segmentation theory suggests that supply and demand for funds at specific segments along the yield curve is different for various groups.

D.The term structure theory is based on expectations of the open long and short positions in the stock market.