If the Yield Curve Is Upward Sloping,then Which Type of Marketable

question 16

Multiple Choice

If the yield curve is upward sloping,then which type of marketable securities,assumed to be held for emergencies,should be held in a firm's portfolio?

• A)They should consist mainly of long-term securities because those pay higher rates.
• B)They should consist mainly of short-term securities because those pay higher rates.
• C)They should consist mainly of government securities to minimize interest rate risk.
• D)They should consist mainly of short-term securities to minimize interest rate risk.

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Definitions:

Misdemeanor

A lesser crime than a felony, punishable by a fine and/or county jail time for up to one year.

Public Intoxication

A legal offense involving being visibly drunk or under the influence of drugs in a public space.

Defendant

The party sued in a civil lawsuit or the party charged with a crime in a criminal prosecution.

Good Samaritan Act

Legislation that offers legal protection to people who give reasonable assistance to those who are injured, ill, in peril, or otherwise incapacitated.