The Term Structure of Interest Rates

question 87

Multiple Choice

The term structure of interest rates

• A) is an indication of investors' expectations about inflation and future interest rates.
• B) will be downward sloping if short-term interest rates are higher than long-term rates.
• C) will be upward sloping under normal conditions.
• D) all of these.

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Definitions:

Cohabitation

Cohabitation with a partner and maintaining a sexual relationship, all outside the institution of marriage.

Remarriage

The act of marrying again after one's marriage has ended through divorce or widowhood, indicating the start of a new marital relationship.

Divorced

The status of having legally dissolved one's marriage, thereby ending the marital relationship and its legal responsibilities and duties.

Remarriage rates

The statistical measure of how often individuals who have been divorced or widowed enter into subsequent marriages.