The Shape of the Yield Curve Is Important for Which

question 68

Multiple Choice

The shape of the yield curve is important for which of the following reasons?

• A)It provides an indication of the anticipated change in interest rates.
• B)It provides an indication of the borrowing costs for corporation.
• C)It provides clues about the economy's current position in the business cycle.
• D)All of the above.

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Definitions:

Extrinsic Motives

Motivation driven by external rewards or pressures rather than internal satisfaction or fulfillment.

Polygraph

A device that measures and records several physiological indices such as blood pressure, pulse, respiration, and skin conductivity while the person is asked and answers a series of questions.

Physiological Functioning

Refers to the normal operation of physical and biological processes in living organisms.

Drive-Reduction Theory

A concept in psychology that explains motivation as a mechanism to reduce an internal state of tension caused by unmet needs.