If Shorter-Term Securities Have Higher Annualized Yields Than Longer-Term Securities

question 25

Multiple Choice

If shorter-term securities have higher annualized yields than longer-term securities, the yield curve

• A)is horizontal.
• B)is upward sloping.
• C)is downward sloping.
• D)cannot be determined unless we know additional information (such as the level of market interest rates).

Interpret the principles of taxation and their application in funding government activities.

Understand the basic concept of the law of demand and its implications for the relationship between price and quantity demanded.

Identify factors that cause movements along and shifts in demand curves.

Distinguish between movements along a demand curve and shifts of the demand curve.

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Definitions:

External

refers to something situated on the outside, or beyond the internal or personal; in psychology, it often pertains to factors or influences that originate outside the individual.

Attitudes

A psychological tendency expressed by evaluating a particular entity with some degree of favor or disfavor.

Intention

A mental state involving commitment to carrying out an action or actions in the future.

Social Loafing

The occurrence in which people put in less effort towards reaching a goal when part of a group than they do when working individually.