The Three Economic Factors That Determine the Shape of the Yield

question 81

Multiple Choice

The three economic factors that determine the shape of the yield curve are

• A) the real rate of interest, the expected rate of inflation, and marketability.
• B) the real rate of interest, the expected rate of inflation, and interest rate risk.
• C) the nominal rate of interest, the expected rate of inflation, and interest rate risk.
• D) the real rate of interest, the nominal rate of interest, and interest rate risk.

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Definitions:

Sedimentary Layer

Stratified deposits formed from the accumulation of mineral and organic particles, often showing distinct bands that indicate different periods of deposition.

Relative Age

Relative age is a way of determining the sequence in which geological events occurred, without necessarily determining their specific age in years.

Boundary

A dividing line or border between different earth sciences phenomena, such as between tectonic plates or ecological biomes.

Tan Rock

A geological formation characterized by its light brownish color, which can vary based on mineral composition and weathering processes.