An Inverted Yield Curve Is One

question 50

Multiple Choice

An inverted yield curve is one

• A) with a hump in the middle.
• B) constructed by using convertible bonds.
• C) that is relatively flat.
• D) that plots the inverse relationship between bond prices and bond yields.
• E) that slopes downward.

---

Definitions:

Operating Cash Flow

The cash generated by a company's normal business operations, reflecting its ability to generate sufficient cash to meet its needs.

Net New Borrowing

Net new borrowing is the difference between the amounts a company borrows and repays during a specific period, reflecting changes in its debt level.

Net New Equity

The difference between equity capital raised by issuing new shares and the equity capital reduced by buying back shares.

Dividends Paid

Payments made by a corporation to its shareholder members, distributing a portion of the company’s earnings.