Which of the Following Statements Is CORRECT

question 4

Multiple Choice

Which of the following statements is CORRECT?

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

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Definitions:

Resources

Assets, materials, and other items of value that an individual or organization possesses, which can be used to achieve goals.

Workforce Diversity

The practice of employing people from a wide range of backgrounds, reflecting a variety of ages, ethnicities, genders, physical abilities, and other characteristics.

Technological Changes

Adjustments or advancements in technology that impact procedures, equipment, and processes in various fields.

Internal Force

Forces within an organization or individual that can affect its actions, decisions, and policies, such as culture, ethics, or internal goals.