The Term Structure of Interest Rates Is Not

question 114

Multiple Choice

The term structure of interest rates is not:

• A) an indication of investors' expectations about inflation and future interest rates.
• B) downward sloping if short-term interest rates are higher than long-term rates.
• C) upward sloping under normal conditions.
• D) upward sloping if long-term interest rates are lower than short-term rates.

---

Definitions:

Taboos

Are among the strongest norms. When someone violates a taboo, it causes revulsion in the community, and punishment is severe.

Material Objects

Physical items that are created or shaped by human beings and hold social, economic, or cultural significance.

Practices

Routinely followed procedures or habits in personal or institutional activities.

Culture

A complex system of beliefs, values, customs, behaviors, and artifacts that members of society use to cope with their world and with one another.