If the Yield Curve Is near the Top of the Business

question 56

True/False

If the yield curve is near the top of the business cycle and is downward sloping,financial institutions should try to lengthen the maturity of their liabilities.

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Definitions:

Proportion

A part or fraction of a whole, often expressed as a percentage or decimal.

Upper Limit

The maximum value in a range or set, beyond which no observations in the data set fall or are allowed.

Relative Frequency Distribution

A tabular summary of data showing the fraction or proportion of observations in each of several nonoverlapping categories or classes.

Fraction

A mathematical expression representing the division of one number by another, denoting part of a whole.