The Existence of an Upward-Sloping Yield Curve Suggests That

question 74

Multiple Choice

The existence of an upward-sloping yield curve suggests that:

• A) bonds should be selling at a discount to par value.
• B) bonds will not return as much as common stocks.
• C) interest rates will be increasing in the future.
• D)real interest rates will be increasing soon.

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Definitions:

Parasympathetic Nervous System

A division of the autonomic nervous system responsible for conserving energy and returning the body to a restful state after stress or activity.

Sympathetic Nervous System

A part of the autonomic nervous system that activates what is often termed the fight or flight response.

Somatic Nervous System

The part of the peripheral nervous system responsible for voluntary muscle movement and the reception of external stimuli.

Peripheral Nervous System

The segment of the nervous system comprising the nerves and ganglia that are not part of the brain and spinal cord.