According to the Expectations Theory of Term Structure,if Market Participants

question 58

Multiple Choice

According to the expectations theory of term structure,if market participants expect future short-term rates to be higher than current short-term rates,the yield curve will:

• A) be upward-sloping.
• B) be downward-sloping.
• C) be flat.
• D) slope upward or downward or be flat, depending on risk and liquidity considerations.

---

Definitions:

Goods-In-Bailment Contract

An agreement involving the temporary transfer of personal property to another party for a specific purpose.

Nonnegotiable

Something that cannot be bought, sold, or transferred to another party, or a term or condition that is not open to discussion or modification.

Document of Title

A legal document proving a person's rights to the property or goods listed on it.

Conditional Sales Contracts

Agreements where the sale is contingent upon certain conditions, often related to the buyer's full payment to the seller.