A Normal Yield Curve That Is Upward Sloping Implies That

question 42

Multiple Choice

A normal yield curve that is upward sloping implies that:

• A)the returns on short-term securities are higher than the returns on long-term securities of similar risk.
• B)the returns on long-term securities are equal to the returns on short-term securities of similar risk.
• C)the returns on short-term securities are lower than the returns on long-term securities of similar risk.
• D)the returns on bonds with higher maturity risks are lower than the returns on bonds with lower maturity risks.
• E)the returns on bonds with a lower default risks are higher than the returns on bonds with higher default risks.

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Definitions:

Marriage

A recognized union under law and society between people that creates duties and privileges among them and their relatives.

Second Marriages

Marital unions that occur after one or both partners have been married previously.

Divorce

The process where a marriage is officially ended by a court or a recognized authority.

Egalitarian

A belief or doctrine that advocates for equal rights, benefits, and opportunities for all members of society, regardless of status or gender.