Assume That a Yield Curve's Shape Is Caused by Liquidity

question 17

Multiple Choice

Assume that a yield curve's shape is caused by liquidity. An MNC may be tempted to finance with a maturity that is less than the expected life of the project when the yield curve is:

• A) flat.
• B) inverted.
• C) upward-sloping.
• D) downward sloping.

---

Definitions:

Flash EEPROM

A type of non-volatile memory chip that can be electronically erased and reprogrammed, commonly used for storing firmware or settings that might need to be updated.

EEPROM

EEPROM, or Electrically Erasable Programmable Read-Only Memory, is a type of non-volatile memory used in computers and other devices to store small amounts of data that must be saved when power is removed.

Zener Diode

A type of semiconductor diode that allows current to flow in the forward direction like a normal diode, but also in the reverse direction when the voltage is above a certain value known as the breakdown voltage.

Electrical Noise Interference

Electrical Noise Interference refers to unwanted disturbances in electrical signals that can cause errors or malfunctions in electronic circuits and communication systems.