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:

Tabula Rasa

A philosophical theory that individuals are born without built-in mental content and that all knowledge comes from experience or perception.

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A 17th-century English philosopher and physician, considered one of the most influential of Enlightenment thinkers and known as the "Father of Liberalism."

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