The Term Structure of Interest Rates

question 118

Multiple Choice

The term structure of interest rates:

• A) is not an indication of investors' expectations about inflation and future interest rates.
• B) will be upward sloping if short-term interest rates are higher than long-term rates.
• C) will be downward sloping under normal conditions.
• D) is referred to as the yield curve.

---

Definitions:

Horizontal Cells

Neurons located in the retina that help integrate and regulate the input from multiple photoreceptor cells, playing a key role in visual processing.

Ganglion Cells

Neurons located in the retina that process visual information and send it to the brain.

Optic Nerve

The cranial nerve that transmits visual information from the retina to the brain.

Just Noticeable Threshold

The minimum level of stimulus intensity needed for a person to detect its presence or a change in its presence, approximately 50% of the time it is present.