An Upward-Sloping Yield Curve That Indicates Cheaper Short-Term Borrowing Costs

question 213

Multiple Choice

An upward-sloping yield curve that indicates cheaper short-term borrowing costs than long-term borrowing costs is called as ________.

• A) normal yield curve
• B) inverted yield curve
• C) flat yield curve
• D) lognormal yield curve

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Definitions:

Accounts Payable

Money owed by a business to its suppliers.

Cash Inflow

The movement of money into a business or project, contributing to its financial resources.

Payment to Suppliers

Financial transactions that involve settling debts with vendors who provide goods or services to a business.

Dividends

Payments made by a corporation to its shareholder members, usually derived from the company's profits.