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.

---

Definitions:

Electronic Presentations

Presentations created and displayed using electronic devices, such as computers or tablets, often incorporating multimedia elements.

Visual Means

Refers to the methods or strategies used to convey information, ideas, or messages through visual elements, such as images, charts, diagrams, or videos.

Quantitative Data

Data that can be measured and expressed numerically, often used in statistical analysis.

Research Study

A detailed examination and analysis of a specific topic, question, or phenomenon, conducted to generate new knowledge or insights.