The Existence of an Upward-Sloping Yield Curve Suggests That

question 74

Multiple Choice

The existence of an upward-sloping yield curve suggests that:

• A) bonds should be selling at a discount to par value.
• B) bonds will not return as much as common stocks.
• C) interest rates will be increasing in the future.
• D)real interest rates will be increasing soon.

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Definitions:

Ledger

A comprehensive collection of a company's financial accounts.

Petty Cash Fund

A small amount of cash kept on hand by a business for making immediate payments for miscellaneous small expenses.

Journal Entries

The basic means of recording financial transactions in the accounting records, consisting of debits and credits to various accounts.

Vouchers

Documents that serve as evidence of authority to make a payment and usually support transactions before they are processed.