Assume That a Yield Curve's Shape Is Caused by Liquidity

question 30

Multiple Choice

Assume that a yield curve's shape is caused by liquidity. An MNC may be tempted to finance with a maturity that is less than the expected life of the project when the yield curve is:

• A) flat.
• B) inverted.
• C) upward-sloping.
• D) downward sloping.

---

Definitions:

Electorate

The body of individuals entitled to vote in an election, representing the collective decision-making capacity in a democratic society.

Disfranchisement

The revocation or denial of the right to vote to a person or group, often used as a means to suppress the political voice of minorities or opponents.

Gilded Age

A period in late 19th-century America characterized by rapid economic growth, industrialization, and a marked disparity between rich and poor.

Labor Conflict

Disputes between employers and employees or between different groups of workers, often regarding working conditions, wages, and union representation.