Which of the Following Statements Is CORRECT

question 4

Multiple Choice

Which of the following statements is CORRECT?

• A) If the maturity risk premium (MRP) is greater than zero, then the yield curve must have an upward slope.
• B) Because long-term bonds are riskier than short-term bonds, yields on long-term Treasury bonds will always be higher than yields on short-term T-bonds.
• C) If the maturity risk premium (MRP) equals zero, the yield curve must be flat.
• D) The yield curve can never be downward sloping.
• E) If inflation is expected to increase in the future, and if the maturity risk premium (MRP) is greater than zero, then the yield curve will have an upward slope.

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Definitions:

Genetic Human

Refers to the aspects, characteristics, and conditions of a human being as determined by their DNA and genetics.

Moral Human

A concept referring to an individual who adheres to principles of right and wrong behavior in society, often guided by personal conscience and societal norms.

Right to Life

The right to life is a fundamental human right that asserts the illegal nature of arbitrarily depriving someone of their life, forming the basis for laws against murder, genocide, and other forms of violence.

Autonomy

The capacity to make an informed, un-coerced decision; often discussed in ethical, legal, and medical contexts as a fundamental human right.