Which of the term structure theories claims that investors require maturity premiums to compensate them for buying securities that expose them to the risks of fluctuating interest rates?

the liquidity preference theory

Explanation:

The theory of liquidity preference relates to the concept that indicates that an investor will accept a lower rate of interest or yield on assets with lengthy-term maturities that come with higher volatility as stakeholders favor cash or other highly liquid resources, all other considerations being equivalent.

As per the liquidity choice principle, brief-term debt interest rate is lower as creditors do not risk liquidity with larger time periods than medium - or longer-term securities. In simple words, As per the liquidity choice principle, the brief-term debt interest rate is lower as creditors do not risk liquidity with larger time periods than medium - or larger-term securities.