When the Yield Curve Is Downward Sloping

question 78

Multiple Choice

When the yield curve is downward sloping:

• A) people are expecting an economic slowdown.
• B) short-term yields are lower than long term yields.
• C) people are expecting higher inflation in the future.
• D) people could be expecting a tightening in monetary policy.

---

Definitions:

Handling Checks

Refers to the process involved in managing and processing checks, including endorsement, presentation for payment, and settlement.

Business Day

A day on which commercial banks are open for business, typically excluding weekends and public holidays.

Deposited

The act of placing money or another form of value into an account or repository.

Endorsement

The act of signing one's name on the back of a check or other negotiable instrument, which allows it to be transferred or cashed.