What is a basic assumption of the market segmentation theory? O

- An upward sloping yield curve indicates higher rates in the future.

- Investors prefer short-term bonds because they are more liquid and less volatile in price than longer term bonds.

- Supply and demand of bonds is primarily influenced by retail investors, especially those in retirement. -

- Supply and demand of bonds is primarily influenced by institutional investors, such as insurance companies and pension funds

Which of the following is likely to cause the Canadian dollar to decline relative to the US dollar? - Political instability, in the US.

- An increase in exports to the US.

- An increase in Canadian inflation relative to US infiation.

- An increase in US inflation relative to Canadian inflation