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:

Voluntary Winding Up

A process initiated by a company's shareholders to close the company, selling off its assets to pay creditors and distributing any remaining assets to shareholders.

Receivership

The first form of external administration prescribed by the Corporations Act. Receivership involves a receiver, receiver–manager or controller being appointed by a court or by secured creditors in order to protect the security of those creditors.

Liquidation

The third form of external administration prescribed by the Corporations Act. The process whereby a company is dissolved, at which point the company ceases to be a legal entity.