If Interest Rates Are Expected to Decrease, the Yield on New

question 67

Multiple Choice

If interest rates are expected to decrease, the yield on new short-term securities may be expected to ____, and the yield curve should be ____ sloping.

• A)increase; upward
• B)increase; downward
• C)decrease; upward
• D)decrease; downward

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Definitions:

Crust Composition

The chemical and physical composition of the Earth's crust, including elements such as oxygen, silicon, aluminum, and iron.

Crust Density

A measure of the density of the Earth's crust, varying based on composition and the type of rock, impacting plate tectonics and geographical formations.

Lithosphere

The rigid outer layer of the Earth, composed of the crust and the upper part of the mantle, which is divided into tectonic plates.

Continental Crust

The substantial section of the Earth's crust that creates the major continental areas, typically older and more intricate than the crust found beneath oceans.