An Upward-Sloping Yield Curve That Indicates Generally Cheaper Short-Term Borrowing

question 123

Multiple Choice

An upward-sloping yield curve that indicates generally cheaper short-term borrowing costs than long-term borrowing costs is called

• A) an inverted yield curve.
• B) a flat yield curve.
• C) a normal yield curve.
• D) none of the above.

---

Definitions:

Expected Return

The anticipated amount of profit or loss an investment is to generate over a specific time period.

SIMPLE Pension Plan

A retirement savings plan that allows employees and employers to contribute to individual retirement accounts (IRAs) setup for employees, typically suitable for small businesses.

Annual Contribution

The total amount of money contributed to a specific account or fund within a single fiscal year.

Age 50

A milestone age that can qualify individuals for certain benefits, such as eligibility for catch-up contributions to retirement plans in the United States.