An Inverted Yield Curve

question 46

Multiple Choice

An inverted yield curve

• A) rewards long- term investors for the additional risk they are assuming.
• B) generally results from actions by the Reserve Bank to control inflation.
• C) means that long- term bonds are yielding more than short- term bonds.
• D) exists when intermediate- term bonds have higher yields than either short- term or long- term bonds.

---

Definitions:

Opportunities

Situations or conditions that present chances for progress or advancement.

Incompatible Goals

Objectives that conflict with each other and cannot be achieved simultaneously.

Interdependence

The mutual reliance between two or more groups or people.

Expressed Struggle

The outward manifestation of a conflict or dispute between two or more parties.