Question

The theory of the term structure of interest rates, which suggests that long-term rates are determined by the average of short-term rates expected over the time that a long-term bond is outstanding, is the

Answer 1

Expectations Theory

Step-by-step explanation:

Victor Vroom's Expectancy Theory deals with motivation and management. Vroom's theory assumes that behaviour is a result of conscious choices among alternatives. The goal of options is to maximize pleasure and minimize suffering. Along with Edouard Lawler and Lyman Porter, Vroom suggested that the relationship between people's behaviour at work and their goals was not as straightforward as other scientists had first imagined it. Vroom realized that employee performance is based on different factors such as personality, skills, knowledge, experience and abilities.

Expectation theory states that people have different sets of goals and can be motivated if they have certain expectations.

EXPECTATIONS OF THE THEORY OF EXPECTATIONS include the following:

• There is a positive correlation between effort and performance.
• The favourable performance will result in a desirable reward.
• The reward will satisfy a critical need.
• The desire to satisfy the need is strong enough to make an effort meaningful.