A Downward Sloping Yield Curve Indicates a Possible Future Recession

question 64

True/False

A downward sloping yield curve indicates a possible future recession.

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Definitions:

Note Payable

A written agreement to pay a specific amount of money, plus interest, by a certain date or upon demand.

Discounted Note

A promissory note whose face value is reduced because it is sold or redeemable for less than its face value before its maturity date.

Maturity

The date on which a financial instrument (such as a bond, loan, or another form of debt) reaches its due date and the principal must be repaid.

Interest-bearing Note

A debt instrument that obligates the borrower to pay interest in addition to repaying the principal amount borrowed.