If the Yield Curve Is Upward Sloping,then Short-Term Debt Will

question 93

True/False

If the yield curve is upward sloping,then short-term debt will be cheaper than long-term debt.Thus,if a firm's CFO expects the yield curve to continue to have an upward slope,this would tend to cause the current ratio to be relatively low,other things held constant.

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Definitions:

Required Condition

A prerequisite or necessary condition that must be met for a certain procedure, test, or action to be appropriate or valid.

Sample Variance

A measure of the dispersion of a sample dataset from its mean, calculated as the sum of squared deviations from the sample mean divided by the number of observations minus one.

Population Variance

A statistical measure of the distribution of values in a population, indicating how much individuals within the population differ from the population mean.

Upper Limit

The maximum value in a set or the highest value that a variable can take.