Use the Following Figure to Answer the Question

question 83

Multiple Choice

Use the following figure to answer the question :

-The U-shaped yield curve in the figure above indicates that short-term interest rates are expected to

• A)rise in the near-term and fall later on.
• B)fall sharply in the near-term and rise later on.
• C)fall moderately in the near-term and rise later on.
• D)remain unchanged in the near-term and rise later on.

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Definitions:

S&P E-Mini Futures

Financial contracts that represent a portion of the standard S&P futures contracts, making them accessible to more investors due to their smaller size.

Listed Price

The official price at which a security is traded on a stock exchange.

Futures Contract

A standardized legal agreement to buy or sell something at a predetermined price at a specified time in the future, used as a financial instrument for hedging or speculation.

Mini-Dow Futures

Futures contracts based on the Dow Jones Industrial Average but with a smaller contract size, allowing for more accessible investment.