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Pass C1000-133 Exam Cram

Exam Code: C1000-133

Exam Name: IBM Sterling Order Management v10.0 and Order Management on Cloud Architect

Version: V15.35

Q & A: 208 Questions and Answers

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NEW QUESTION: 1
Which interest rate theory is most widely accepted as explaining the term structure of interest rates?
A. Liquidity preference
B. Market segmentation
C. Expectations hypothesis
Answer: C
Explanation:
Expectations hypothesis: the hypothesis which explains the term structure of interest rates, stating that a long- term interest rate is the average of expected short-term interest rates over the applicable time period. If, for example, long-term rates are higher than short-term rates, then according to the expectations hypothesis, investors must expect that short-term rates will be increasing in coming periods.

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