If the Yield Curve Begins to Rise Sharply, It Is

question 41

Multiple Choice

If the yield curve begins to rise sharply, it is usually an indication that

• A) inflation is starting to increase, or is expected to do so in the near future.
• B) inflation rates have peaked and are about to decline.
• C) bond prices are expected to increase.
• D) shares are offering low returns as the economy enters a recession.

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Definitions:

Limited Services

Refers to businesses that offer a restricted range of services, often to maintain efficiency and reduce costs.

Extreme-value Retailers

Retail stores that offer a wide variety of merchandise, typically with low prices, targeting consumers looking for extreme deals.

Limited Assortments

Retailing strategy where a store offers a small number of products in order to focus on a specific category and reduce costs.

Excess Inventory

Refers to the surplus of products or materials that a business has on hand, exceeding the demand or need, often leading to storage issues or discounted sales.