Which of the Following Statements Is True About an Inverted

question 48

Multiple Choice

Which of the following statements is true about an inverted yield curve?

• A)Long term interest rates are less than short term interest rates and the market is expecting future interest rates to rise
• B)Long term interest rates are less than short term interest rates and the market is expecting future interest rates to fall
• C)Long term interest rates are greater than short term interest rates and the market is expecting future interest rates to rise
• D)Long term interest rates are greater than short term interest rates and the market is expecting future interest rates to fall

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