Examlex
The following is an example of a(n) ____
Expectations Hypothesis
A theory in finance that explains the structure of interest rates by suggesting that the long-term rate can be determined by current and future expected short-term interest rates.
Interest Rates
Interest rates are the cost of borrowing money or the reward for saving, typically expressed as a percentage of the principal, which borrowers pay to lenders or financial institutions.
Inverted Yield Curve
A situation in the bond market where long-term debt instruments have a lower yield than short-term debt instruments, often seen as an indicator of economic recession.
Long-term Interest Rates
Interest rates applied to loans or debt securities with longer maturity dates, generally over ten years.
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