Which of the Following Statements Is Correct

question 109

Multiple Choice

Which of the following statements is correct?

• A) If the unbiased expectations theory is correct, we could see an inverted yield curve.
• B) If a yield curve is inverted, long-term bonds have higher yields than short-term bonds.
• C) If the maturity risk premium is zero, the yield curve would be flat.
• D) If the unbiased expectations theory is correct, the maturity risk premium is zero.

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Definitions:

Wilson's Goals

Refers to President Woodrow Wilson's objectives, including his "Fourteen Points" for achieving peace after World War I and his efforts to establish the League of Nations.

Labor Movement

The collective organization of working people, through unions and other groups, to improve their rights, working conditions, and wages.

World War I

A global conflict that lasted from 1914 to 1918, often called the Great War, which involved most of the world's great powers and was marked by significant losses and the destruction of empires.

Economic Justice

The principle or idea of fairness in economic policies, distribution of wealth, and opportunities within a society.