When the Yield Curve Is Flat or Downward-Sloping, It Suggests

question 46

Multiple Choice

When the yield curve is flat or downward-sloping, it suggests that the economy is more likely to enter ________.

• A) a recession
• B) an expansion
• C) a boom time
• D) a period of increasing output

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Definitions:

Historical Rate

A reference to the exchange rate used in translating foreign currency amounts into the reporting currency for financial statements at a specific past date.

Temporal Method

A method of foreign currency translation that uses exchange rates based on the timing of the original transaction.

Property, Plant & Equipment

Long-term tangible assets used in the operation of a business that are not intended for sale, such as machinery and buildings.

Historical Rate

The exchange rate at which a foreign currency transaction was converted into the reporting currency at the time of the transaction.