If the Slope of the Yield Curve Is Positive, This

question 14

Multiple Choice

If the slope of the yield curve is positive, this means which of the following?

• A)Yields decline as the term to maturity increases.
• B)Yields decline as the term to maturity decreases.
• C)Yields rise as the term to maturity increases.
• D)Yields rise as the term to maturity decreases.

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Definitions:

Firms

Business organizations that use resources to produce goods or services for profit.

Goods and Services

Refers to tangible products and intangible activities that fulfill the needs or wants of consumers.

Factors of Production

Resources used in the production of goods and services, including labor, capital, land, and entrepreneurship.

Human Capital

The skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value to an organization or society.