If the Yield Curve Is Upward Sloping

question 61

Multiple Choice

If the yield curve is upward sloping:

• A)investors expect the short-term interest rates to fall in the future.
• B)investors often shift their investment holdings away from long-term securities.
• C)investors often short sell short-term securities.
• D)no portfolio management is required.
• E)investors often shift their investment holdings away from short-term securities.

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Definitions:

Exportability

The capacity or feature of a product or service that allows it to be exported or sold in foreign markets.

Licensing Agreement

A legally binding contract in which a property owner permits another party to use the property under specified conditions, often for intellectual property.

Financial Loss

The loss of money or decrease in financial value in an investment, transaction, or business operation.

Microchips

Small electronic components consisting of integrated circuits used in various devices for processing, storage, and control purposes.