An Inverted Yield Curve

question 35

Multiple Choice

An inverted yield curve

• A) Exists when short-term rates exceed long-term rates.
• B) Exists when long-term rates exceed short-term rates.
• C) Represents the "normal term structure."
• D) Signifies that investors can get higher returns by investing in bonds than by investing in stocks.
• E) Signifies that investors can get higher returns on stocks than on bonds.

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