An Upward Sloping Yield Curve Indicates

question 38

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.

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Definitions:

Anal-retentive

Relates to a personality trait described by Freud as overly orderly, stingy, and obstinate, thought to originate from strict toilet training in early childhood.

Oedipal

Relating to the Oedipus complex, a theory in psychoanalytic psychology that describes a child's feelings of desire for the opposite-sex parent and jealousy toward the same-sex parent.

Electra

A psychoanalytic theory originally suggested by Carl Jung, referring to a girl's psychosexual competition with her mother for possession of her father.

Sigmund Freud

A neurologist from Austria who established psychoanalysis, a technique for addressing mental disorders via conversation between a psychoanalyst and their patient.