If Interest Rates Are Expected to Decrease, the Yield on New

question 67

Multiple Choice

If interest rates are expected to decrease, the yield on new short-term securities may be expected to ____, and the yield curve should be ____ sloping.

• A)increase; upward
• B)increase; downward
• C)decrease; upward
• D)decrease; downward

---

Definitions:

Third Party

An individual or group besides the two primarily involved in a situation or transaction, often providing additional services or acting as an intermediary.

Authorized

Officially given permission or power to do something.

Actual Authority

The express and implied powers granted by a principal to an agent to act on the principal’s behalf.

Apparent Authority

The appearance or assumption of authority based on the actions or words of the principal, which a third party reasonably believes the agent has.