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.