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Which of the following statements is true A Interest rates on bonds of different maturities tend to move together over time O B. Yield curves

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Which of the following statements is true A Interest rates on bonds of different maturities tend to move together over time O B. Yield curves almost always slope downward. O c. when short-term interest rates are low. yield curves tend to be inverted. D. When short-term interest rates are high, yield curves tend to be upward sloping According to the segmented markets theory of the term structure of interest rates, if bondholders prefer short-term bonds to long-term bonds, the yield curve will be Why would haircuts on collateral increase sharply during a financial crisis? O A. O B. There is a lack of credit standards and rules. There is an increase in the uncertainty over the value of assets. C. There is a decrease in the number of nondepository financial firms. O D. There is an increase in demand for loans. What would be the result of an increase in haircuts on collateral? O A. The shadow banking system would play an even more prominent role in financial markets. O B. Increasing haircuts would allow a financial institution to borrow a higher level of funds. C. Financial institutions would engage in fire sales on assets. 0 D. With increased collateral requirements, balance sheets of firms and households would greatly improve

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