When the Yield Curve Is Flat, This Means Which of the Following

question 7

Multiple Choice

When the yield curve is flat, this means which of the following?

• A)Short-term securities yield more than long-term securities.
• B)Short-term securities yield less than long-term securities.
• C)Short-term securities yield the same as long-term securities.
• D)None of the above is correct.

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Definitions:

Money Markets

Financial markets for short-term borrowing and lending, typically dealing with assets that mature in less than one year.

Trillions

A numerical value representing one thousand billion, or 10^12, used in the context of large sums, such as government budgets or the global economy.

Brokers' Call Rate

The interest rate charged by banks to brokers for the money borrowed to fund their clients' margin accounts.

Margin Account

Margin Account is a brokerage account which allows investors to borrow money to buy securities, using the purchased securities as collateral for the loan.