An Upward-Sloping Term Structure of Interest Rates Indicates

question 118

Multiple Choice

An upward-sloping term structure of interest rates indicates:

• A)the real rate of return is lower for short-term bonds than for long-term bonds.
• B)there is an indirect relationship between real interest rates and time to maturity.
• C)there is an indirect relationship between nominal interest rates and time to maturity.
• D)the nominal rate is declining as the real rate rises as the time to maturity increases.
• E)the nominal rate is increasing even though the real rate is constant as the time to maturity increases.

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Definitions:

Teratogens

Substances or elements that lead to fetal or embryonic developmental issues or congenital anomalies.

Blastocyst

A blastocyst is an early stage in the development of an embryo, consisting of a sphere of cells surrounding a fluid-filled cavity and the cluster of cells from which the embryo will develop.

Placenta

An organ that develops in the uterus during pregnancy, supplying oxygen and nutrients to the growing baby and removing waste products.

Critical Periods

Specific timeframes in the development of an organism when it is particularly sensitive to certain environmental stimuli, leading to irreversible outcomes.