Which of the following is true of the market segmentation theory? a. according to the market segmentation theory, the yield curve can only be flat at any given time. b. according to the market segmentation theory, lenders prefer to make short-term loans rather than long-term loans. c. according to the market segmentation theory, the slope of the yield curve depends on supply/demand conditions of a security in the long- and short-term markets. d. according to the market segmentation theory, the shape of the yield curve depends on investors' expectations about future inflation rates. e. according to the market segmentation theory, the yield curve can only be upward sloping at any given time.

c. According to the market segmentation theory, the slope of the yield curve depends on supply/demand conditions of a security in the long- and short-term markets.

Explanation:

According to market segmentation theory the long term loan rate and short term loan rates are not related to each other in any manner, as depends on different needs of different individuals for the same.

Accordingly the yield curve for the same depends on the market conditions of each loan respectively on the supply and demand for the loans.

The short term and long term markets are completely different.

These depend upon the availability of securities in each market separately.

Thus, statement C is correct.

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.