Which of the Following Statements Is True

question 72

Multiple Choice

Which of the following statements is true?

• A) Downward sloping yield curves typically appear in the early to mid-period of a business expansion.
• B) Interest rate risk always provides an upward bias to the slope of the yield curve.
• C) If investors believe that inflation will be increasing in the near future, the yield curve will be downward sloping.
• D) Downward or inverted yield curves are the type most commonly observed.

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Definitions:

Ego

In psychoanalytic theory, the part of the human personality that is rational, reality-oriented, and operates according to the principle of seeking pleasure and avoiding pain.

Pleasure Principle

A psychoanalytic concept that posits individuals seek immediate gratification to avoid pain and increase pleasure, driving much of human behavior.

Freud

Sigmund Freud, an Austrian neurologist who founded the discipline of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Primary Process

A term from psychoanalytic theory that describes the irrational and instinctual thought processes of the unconscious mind.