Expectations Theory

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Definition: Expectations Theory

Expectations Theory
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Full Definition of Expectations Theory

A theory that forward interest rates can be used as a barometer for future interest rates. Investors expecting higher short-term interest rates are more likely to buy bonds maturing in the short term. If the were to park money into a long term debt they might not be able to make as much interest.

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April 19, 2024 https://payrollheaven.com/define/expectations-theory/.
Chicago Manual of Style (CMS):
Expectations Theory. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/expectations-theory/ (accessed: April 19, 2024).
American Psychological Association (APA):
Expectations Theory. PayrollHeaven.com. Retrieved April 19, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/expectations-theory/

Definition Sources

Definitions for Expectations Theory are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.