An Inverted Yield Curve

question 71

Multiple Choice

An inverted yield curve

• A) means that long-term bonds are yielding more than short-term bonds.
• B) exists when intermediate-term bonds have higher yields than either short-term or long-term bonds.
• C) rewards long-term investors for the additional risk they are assuming.
• D) generally results from actions by the Federal Reserve to control inflation.

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Definitions:

Reclaim

The process of getting something back or asserting one's rights to a previously ceded property or state.

Replevin

A legal remedy involving the recovery of specific goods or chattels wrongfully taken or detained, allowing the rightful owner to regain possession.

Unlawfully Withheld

Illegally retained or kept possession of something that should have been returned or released.

Wrongfully Rejected

The improper refusal of a contracting party to accept performance or delivery of contracted goods or services.