Which of the Following Statement Completions Is CORRECT? If the Yield

question 14

Multiple Choice

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

• A) consist mainly of long-term securities because they pay higher rates.
• B) consist mainly of short-term securities because they pay higher rates.
• C) consist mainly of U.S.Treasury securities to minimize interest rate risk.
• D) consist mainly of short-term securities to minimize interest rate risk.
• E) be balanced between long- and short-term securities to minimize the adverse effects of either an upward or a downward trend in interest rates.

---

Definitions:

Linea Alba

A fibrous structure that runs down the midline of the abdomen, forming part of the abdominal wall.

Rectus Abdominis

A long muscle running from the pubis to the rib cage, responsible for flexing the lumbar spine and stabilizing the pelvis.

Rectus Abdominis

A long muscle that runs vertically on each side of the anterior wall of the human abdomen, known for forming the "six-pack" in well-developed individuals.

Posterior Deep Pectoral

A muscular region located deep within the chest, often referred to in the context of anatomy and muscle structure.