If Three-Year Securities Are Yielding 6% and Two-Year Securities Are

question 37

Multiple Choice

If three-year securities are yielding 6% and two-year securities are yielding 5.5%, future short-term rates are expected to ______, and outstanding security prices are expected to ______.

• A) fall; fall.
• B) rise; fall.
• C) fall; rise.
• D) rise; rise

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Definitions:

False Imprisonment

Unlawfully restraining a person against their will within a bounded area, without legal authority, justification, or consent.

Tort Law

The area of law that deals with civil wrongs, not arising out of contractual obligations, for which the injured party may receive damages or equitable relief.

Compensate

To provide something, usually money, in recognition of loss, suffering, or damage experienced by an individual or entity.

Future Harms

Potential damage or adverse outcomes that may occur in the future as a result of current actions or decisions.