Downward Sloping or Flat Yield Curves Often Indicate

question 99

Multiple Choice

Downward sloping or flat yield curves often indicate

• A)a recession in the near future.
• B)an economic expansion in the near future.
• C)higher inflation in the near future.
• D)a weaker dollar in the foreign exchange markets.

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Definitions:

Issuance Price

The price at which a company's securities are offered to the public for sale for the first time.

Market Rate

The prevailing price or interest rate at which goods, services, or securities are bought and sold in a competitive marketplace.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.

Present Value

The current financial worth of a prospective amount of money or sequence of monetary flows, considering a set rate of return.