Which of the Following Statements Is CORRECT

question 51

Multiple Choice

Which of the following statements is CORRECT?

• A) If the maturity risk premium (MRP)is greater than zero,the Treasury bond yield curve must be upward sloping.
• B) If the maturity risk premium (MRP)equals zero,the Treasury bond yield curve must be flat.
• C) If inflation is expected to increase in the future and the maturity risk premium (MRP)is greater than zero,the Treasury bond yield curve must be upward sloping.
• D) If the expectations theory holds,the Treasury bond yield curve will never be downward sloping.
• E) Because long-term bonds are riskier than short-term bonds,yields on long-term Treasury bonds will always be higher than yields on short-term T-bonds.

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Definitions:

Organic Facings

Organic facings refer to the friction material made of organic compounds used in clutch discs and some brake pads for smoother engagement and noise reduction.

Ceramic Facings

Components made of ceramic material, used in various mechanical applications like clutch systems, for their durability and heat resistance.

Clutch Friction Facings

The material on the surface of a clutch disc that contacts the flywheel and pressure plate, providing the friction to transfer torque.

Clutch Pressure Plate

A crucial part of a vehicle's clutch system, responsible for applying pressure to the clutch disc to engage or disengage power from the engine to the drivetrain.