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State the expectations theory of the term structure of interest rates.
Expectations theory:
The expectations theory of the term structure of interest rates specifies that into equilibrium, each long-term rate is a geometric average of today’s short term rate and usual short-term rates in the future.
This theory needs that there is an implicit relationship in between forward rates and current bond yields. The forward rate of interest is the rate of interest which will be payable onto funds beginning at any future date.
TYPES OF WORKING CAPITAL Working capital can be split up into two categories on the basis of time. They are Permanent Working Capital and Temporary or Variable Working capital
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Suppose the government regulates the price of a good to be no lower than some minimum level. Can such a minimum price make producers as a whole worse off? Explain. As a higher
a) What are the pre-requisites of installation of responsibility accounting system? b) Diffrence between 'cost centre' and 'profit centre'.
A niche market targets a well-defined and specific market segment. Firms that operate in niche markets will therefore cater for the precise and distinct needs of their customers. D
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