If the Yield Curve Is Inverted, a Portfolio Manager Can

question 11

Multiple Choice

If the yield curve is inverted, a portfolio manager can take advantage of this by:

• A) pricing more deposits on a fixed-rate basis.
• B) buying more long-term securities
• C) making variable-rate, callable loans.
• D) increasing the number of rate-sensitive assets.
• E) All of the above.

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Definitions:

Commercial Interests

Describes the business pursuits and ventures that aim at generating profit, particularly those involving trade and commerce.

China

A country in East Asia, the world's most populous nation, with a long history, rich culture, and significant global economic and political influence.

1899

A year noted for marking the end of the Spanish-American War with the signing of the Treaty of Paris, leading to Spain ceding control of its colonies.