Remaining Time: 16 minutes, 33 seconds Question Completion Status Qu Which of the following statements is correct? The expectations theory of the term structure of interest rates us that towers gery to m. basis while savers generally prefer to lend on a short-term basis, and that they It is theoretically possible for the yield Curve to have a downward slope, and there have been times when with a ma win. That situation was probably caused by investors' liquidity preferences, 1.o., by the factors which under the CCA theory. Reinvestment rate risk is higher, other things held constant, on long-term than on short-term bonds. According to the market segmentation theory of the term structure of interest rates, we should normally expect the yield crve to slope downward. If the yield on a 1-year T-bills is lower than the expected rate of inflation during the coming year, and it the maturity risk and liquidity premiums on 1-year T-bills are zero, then the real risk-free rate must be negative. MacBook Pro w 3 2 R E Co W F D s