According to the Expectations Theory of the Term Structure

question 33

Multiple Choice

According to the expectations theory of the term structure

• A)when the yield curve is steeply upward sloping,short-term interest rates are expected to remain relatively stable in the future.
• B)when the yield curve is downward sloping,short-term interest rates are expected to remain relatively stable in the future.
• C)investors have strong preferences for short-term relative to long-term bonds,explaining why yield curves typically slope upward.
• D)yield curves should be equally likely to slope downward as slope upward.

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Definitions:

Outputs

Outputs are the results or products generated by a system, process, or activity after processing input.

Efficiency

The ratio of the useful output of a system to its input, often used to measure the performance and productivity of a process or system.

Clean Sheet

An approach in design or planning that starts from scratch, without considering prior work or constraints, often referred to as starting with a 'blank slate'.

BPR

Business Process Re-engineering, a strategy for making an organization's business processes more efficient and effective.