An Inverted Yield Curve Is Usually the Result Of

question 25

Multiple Choice

An inverted yield curve is usually the result of:

• A) a devaluing currency.
• B) the time value of money.
• C) a present-value calculation.
• D) greater uncertainty in the future.
• E) the Fed fighting inflation.

---

Definitions:

Entitlement

A right granted by law or contract, especially to financial benefits from the government.

Bonus

An incentive payment that is supplemental to the base wage.

Base Wages

The initial or fundamental salary paid to an employee before any bonuses, benefits, or overtime are accounted for.

Lump-sum Merit Pay

A one-time payment given to an employee as a reward for performance, rather than a continuous salary increase.