Which of the Following Statements Is CORRECT

question 81

Multiple Choice

Which of the following statements is CORRECT?

• A) If inflation is expected to increase in the future,and if the maturity risk premium (MRP)is greater than zero,then the Treasury yield curve will have an upward slope.
• B) If the maturity risk premium (MRP)is greater than zero,then the yield curve must have an upward slope.
• C) 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.
• D) If the maturity risk premium (MRP)equals zero,the yield curve must be flat.
• E) The yield curve can never be downward sloping.

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Definitions:

Posttranscriptional Processing

The series of modifications that RNA transcripts undergo after transcription, including splicing, editing, and polyadenylation.

MRNA

Messenger RNA, a type of RNA that carries genetic information from DNA in the nucleus to the ribosome sites of protein synthesis in the cytoplasm.

Functional RNA

RNA molecules that play a role in the cell that goes beyond being a mere messenger of DNA, including tRNA and rRNA, which are involved in protein synthesis.

Triplets

The occurrence of three offspring born from the same pregnancy, either from one or multiple eggs.