The extent to which inventory financing may be used depends on


marketability of pledged goods.
price stability of goods.
perishability of goods.
all of the above

The belief that investors require a higher return to entice them into holding long-term securities is the viewpoint of the

the expectations hypothesis.
segmentation theory.
the liquidity premium theory.
market credit crunch theory.

Lashay -- please do not post multiple choice questions without telling us what YOU think the answers are and explaining YOUR reasoning. You've chosen to take this course and therefore should be doing the work and thinking.

To determine the extent to which inventory financing may be used, you need to consider the marketability of pledged goods, the price stability of goods, and the perishability of goods. Therefore, the correct answer is "all of the above."

The belief that investors require a higher return to entice them into holding long-term securities is referred to as the liquidity premium theory. Therefore, the correct answer is "the liquidity premium theory."