During financial crises investors shift their funds out of


Effect of Crises on the Yield Curve.

During financial crises, investors shift their funds out of the stock market and into money market securities for safety, even if they do not fear rising interest rates. Explain how and why these actions by investors affect the yield curve. Is the shift due to the expectations theory, liquidity premium theory, or segmented markets theory?

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Finance Basics: During financial crises investors shift their funds out of
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