Which of the Following Is a Possible Outcome of a Negative

question 22

Multiple Choice

Which of the following is a possible outcome of a negative or low term spread?

• A)A low of negative spread may indicate higher short-term interest rates in the future.
• B)A low or negative spread may cause the yield curve to slope upward.
• C)A low or negative spread may reduce lending by banks.
• D)A low or negative spread may indicate the early stages of economic expansions.

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Definitions:

Flexibility Exercise

Physical activities designed to improve the range of motion of muscles and joints, often involving stretching.

Joint Capsule

A sac-like structure that surrounds a joint, providing the joint with stability and keeping the synovial fluid that lubricates the joint contained.

Frozen Shoulder

A condition characterized by stiffness and pain in the shoulder joint, leading to a decreased range of motion.

Stiffness

A physical condition in which muscles feel tight and movement is restricted, often resulting from exercise, injury, or long periods of inactivity.