If One-Period Forward Rates Are Decreasing with Maturity, the Yield

question 53

Multiple Choice

If one-period forward rates are decreasing with maturity, the yield curve is most likely:

• A) flat.
• B) upward sloping.
• C) downward sloping.

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Definitions:

Talents

Describes individuals' natural aptitudes or skills in particular areas, such as art, sports, or intellectual achievements.

Fixed Mindset

A psychological theory describing individuals who believe their talents and abilities are fixed traits that cannot be developed.

Effort

The exertion of physical or mental energy toward the accomplishment of a task.

Sensitive

Having the capacity to perceive and respond to changes or stimuli; can also refer to an individual's susceptibility to emotional influences.