If the Yield Curve Is Upward Sloping, Then the Marketable

question 110

Multiple Choice

If the yield curve is upward sloping, then the marketable securities held in a firm's portfolio, assumed to be held for emergencies, should be which of the following?

• A) They should consist mainly of long-term securities because those pay higher rates.
• B) They should consist mainly of short-term securities because those pay higher rates.
• C) They should consist mainly of government securities to minimize interest rate risk.
• D) They should consist mainly of short-term securities to minimize interest rate risk.

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Definitions:

Facilitation And Support Approach

A strategy aimed at helping individuals or groups achieve their goals by providing necessary guidance, resources, or assistance.

Resistance To Change

is the unwillingness or opposition of individuals or groups within an organization to adopt new strategies, processes, or changes, often due to fear of the unknown or loss of comfort.

Education And Communication Strategy

A planned approach to disseminating information and fostering learning, typically aimed at achieving specific organizational objectives or societal goals.

Employee Resistance

The opposition or pushback from employees against changes or policies implemented by management.