If Interest Rates Are Expected to Decrease, the Yield on New

question 67

Multiple Choice

If interest rates are expected to decrease, the yield on new short-term securities may be expected to ____, and the yield curve should be ____ sloping.

• A)increase; upward
• B)increase; downward
• C)decrease; upward
• D)decrease; downward

---

Definitions:

Frederick Herzberg

An influential American psychologist known for developing the Motivation-Hygiene Theory, which distinguishes between factors that create job satisfaction (Motivators) and those that prevent dissatisfaction (Hygiene factors).

Motivational Tool

Any technique, strategy, or incentive used to inspire individuals or teams to achieve their goals and improve performance.

Money

A medium of exchange used to facilitate transactions for goods and services.

Motivation Theories

These theories explore what factors drive individuals to initiate, direct, and sustain particular behaviors at work or in other activities.