When the Yield Curve Is Downward-Sloping

question 81

Multiple Choice

When the yield curve is downward-sloping,

• A)short-term yields are higher than long-term yields.
• B)long-term yields are higher than short-term yields.
• C)the bond market is anticipating the U.S. Treasury may default on its obligations.
• D)the inflation rate is expected to rise.

---

Definitions:

Team Norms

Informal guidelines that regulate how members in a team interact, communicate, and work together.

Cohesiveness

The quality of forming a united whole, often used to describe the level of solidarity and togetherness among members of a group or team.

Agreement-At-Any-Cost

A situation or mindset where reaching an agreement is prioritized over the content or quality of the deal, often at the expense of one's own interests or principles.

Groupthink

A mental effect experienced by a group, where the longing for agreement or compliance leads to illogical or ineffective decisions.