With respect to the term structure of interest rates, the market segmentation theory holds that: Question 3Answer a. The shape of the yield curve is independent of the relationship between long-term and short-term interest rates b. The yield curve reflects the maturity demand of financial institutions and investors c. An increase in demand for long-term borrowings could lead to an inverted yield curve d. Expectations about the future of short-term interest rates are the major determinants of the shape of the yield curve