Which of the Following Statements Is CORRECT

question 49

Multiple Choice

Which of the following statements is CORRECT?

• A) 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.
• B) If the maturity risk premium (MRP) is greater than zero, then the
• Yield curve must have an upward slope.
• C) 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.
• D) If the maturity risk premium (MRP) equals zero, the yield curve
• Must be flat.
• E) The yield curve can never be downward sloping.

---

Definitions:

Acquired Building

A building that has been purchased or obtained by a company or organization through purchase or other means of acquisition.

Appraised

The act of determining the value of an asset, typically by a professional appraiser, based on its characteristics and the market conditions.

Malpractice

Failure by a professional to meet the standards of conduct, performance, or ethics in their job, often resulting in harm to clients or patients.

Elements

Fundamental substances that consist of atoms of only one kind and cannot be broken down or converted into another substance by chemical means.