When Yield Curves Are Steeply Upward Sloping

question 86

Multiple Choice

When yield curves are steeply upward sloping

• A)long-term interest rates are above short-term interest rates.
• B)short-term interest rates are above long-term interest rates.
• C)short-term interest rates are about the same as long-term interest rates.
• D)medium-term interest rates are above both short-term and long-term interest rates.

---

Definitions:

Commitment

A state or quality of being dedicated to a cause, activity, or goal, showing loyalty or allegiance.

Reluctant

Feeling or showing aversion, hesitation, or unwillingness to do something.

Free-Agent Economy

An economic system where individuals act as independent contractors or freelancers, rather than being committed to a single, long-term employer.

Independent Contracts

Refers to agreements or arrangements where individuals or entities provide services to another entity as non-employees, typically governed by contractual terms.