An Inverted Yield Curve

question 58

Multiple Choice

An inverted yield curve

• A) means that long-term bonds are yielding more than short-term bonds.
• B) results when investor demand for longer maturities exceeds the demand for shorter maturities.
• C) rewards long-term investors for the additional risk they are assuming.
• D) sometimes results from actions by the Federal Reserve to control inflation.

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