An Upward Sloping Yield Curve Indicates

question 29

Multiple Choice

An upward sloping yield curve indicates

• A)interest rates are declining.
• B)lower quality bonds have higher yields.
• C)short-term rates will rise sharply in the near future.
• D)an inverse relationship between bond prices and yields.
• E)long-term rates are higher than medium-term rates.

---

Definitions:

Trade

The act of buying, selling, or exchanging commodities within domestic or international markets.

Mutually Beneficial

A scenario where all parties involved gain advantages or benefits from an arrangement or transaction.

Flexible Budget

A budget that adjusts or scales according to variations in actual activity levels or output, providing a more realistic comparison of costs and revenues.

Allocation Of Resources

The process of distributing available resources, such as time, money, and materials, among various projects or departments within an organization.