The Term Structure of Interest Rates or the Yield Curve

question 122

Multiple Choice

The term structure of interest rates or the yield curve:

• A) is normal when short-term rates are higher than long-term rates.
• B) is inverted when short-term rates are lower than long-term rates.
• C) shows the yield to maturity for securities of equal risk over time.
• D) is always flat in the short-term.

Understand the importance and impact of effective communication in the workplace.

Recognize the role and implications of nonverbal communication.

Identify strategies to overcome communication barriers.

Understand the communication process and the importance of feedback.

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Definitions:

FICA Taxes

Federal taxes in the United States that fund Social Security and Medicare, required to be withheld from employees' paychecks and also paid by employers.

Allowances

Amounts set aside for adjustments or reductions in the value of accounts or inventories, often for potential bad debts or depreciation.

Withheld

Refers to amounts deducted from an employee's wages or payments, often pertaining to taxes or other legal obligations, not immediately paid to the employee.

Interstate Commerce

A test that is applied to determine whether an employer must follow the rules of the Fair Labor Standards Act. If an employer communicates or does business with another business in some other state, it is usually considered to be involved in interstate commerce.