The Three Economic Factors That Affect the Shape of the Yield

question 2

Multiple Choice

The three economic factors that affect 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 default risk.
• D) the real rate of interest, the nominal rate of interest, and currency risk.

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Definitions:

Virtues

Moral excellence and righteousness; qualities of character that are deemed to be morally good or desirable in a person.

Market System

In this economic order, the strategies for investment, production, and merchandise distribution are dictated by supply and demand trends, with a free-market policy guiding the pricing of all goods and services.

Economic Systems

The means by which countries or communities organize and distribute available resources, goods, and services across the economy.

North Korea

North Korea is a country in East Asia, officially known as the Democratic People's Republic of Korea, known for its authoritarian government and isolation from most of the international community.