Which of the Following Statements Is CORRECT

question 48

Multiple Choice

Which of the following statements is CORRECT?

• A) the most likely explanation for an inverted yield curve is that investors expect inflation to increase.
• B) the most likely explanation for an inverted yield curve is that investors expect inflation to decrease.
• C) if the yield curve is inverted, short-term bonds have lower yields than long-term bonds.
• D) inverted yield curves can exist for treasury bonds, but because of default premiums, the corporate yield curve can never be inverted.
• E) the higher the maturity risk premium, the higher the probability that the yield curve will be inverted.

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A set of interconnected digital devices that can share resources, data, and applications among users or systems.

Cyberterrorists

Individuals or groups that use online means to carry out acts of terror, often targeting critical infrastructure or spreading fear.

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Scam

A deceptive scheme or trick designed to cheat someone out of something, typically money.