Watch the following two videos: Level II CFA: Traditional Theories of the Term Structure of Interest Rates Demystified (Links to an external site.) Modern Term Structure Models Demystified (Links to an external site.) For this discussion, choose one of the following traditional interest rate theories to discuss: Local Expectations Theory Liquidity Preference Theory Segmented Markets Theory Preferred Habitat Theory In the post, describe the underlying economic factors that the theory indicates impacts the shape of the yield curve. Additionally, identify one strength and one weakness of the theory.

Topic 1Supply and demand is the foundation of the market economy and the basis of the study of economics.Why supply and demand is considered as factors that make market economies work? Why supply and demand drives the market economy? Provide an example of the role of supply and demand in business decision making.What is the difference between a movement along and a shift of the demand and supply curves? What are the factors that lead to shifts in supply and demand curves?Topic 2Without government intervention, the market price moves to the level at which the quantity supplied equals the quantity demanded through the interactions of supply and demand. But governments intervene in the market now and then to control prices.What are the market inefficiencies the price controls measures such as price ceilings and price floors create? Why do price ceilings and price floors lead to productive and allocative (marketing) inefficiency?Who benefits and who loses from government interventions in markets through price control methods known as price ceilings and price floors? Why price controls are used despite their well-known problems?