When the Yield Curve Is Downward-Sloping

question 81

Multiple Choice

When the yield curve is downward-sloping,

• A)short-term yields are higher than long-term yields.
• B)long-term yields are higher than short-term yields.
• C)the bond market is anticipating the U.S. Treasury may default on its obligations.
• D)the inflation rate is expected to rise.

---

Definitions:

Claim Of Fraud

A legal allegation that an individual or entity intentionally deceived another to cause harm or loss, typically financial.

Real Property

Land and anything permanently attached to it, such as buildings or structures, which is considered immovable.

Misrepresentation

The act of providing false or misleading information with the intent that others will rely on it to their detriment.

Undue Influence

An act of persuasion that overcomes the free will of another person, often through manipulation or coercion, leading to an unfair advantage in a legal contract or transaction.