If the N 1-Year Interest Rates Are Expected to Remain

question 80

Multiple Choice

If the n 1-year interest rates are expected to remain constant and the term premium rises with maturity, the yield curve would:

• A)slope upward.
• B)slope downward.
• C)be flat.
• D)be vertical.

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Definitions:

Complex Sentences

Sentences that contain one independent clause and at least one dependent clause, used to express detailed or nuanced ideas.

Long

Descriptive of something with a great length or duration, extending far from end to end.

Dangling Modifier

A word or phrase that modifies a word not clearly stated in the sentence, often leading to confusing and grammatically incorrect sentences.

Misplaced Modifier

A grammatical error where a modifier (word, phrase, or clause) is placed in a sentence in such a way that it appears to modify an unintended word, leading to ambiguity or confusion.