A ________ yield curve predicts a future increase in inflation.A) steeply upward slopingB) slight upward slopingC) flatD) downward sloping

When the yield curve is flat or downward-sloping, it suggest that the economy is morelikely to enterA) a recession.B) an expansion.C) a boom time.D) a period of increasing output.

At any time, the slope of the yield curve is affected by:Select one:a.inflationary expectations.b.liquidity preferences.c.the comparative equilibrium of supply and demand in the short-term and long-term market segments.d.Both a and c are correct.e.All a, b and c are correct.

Which of the following statements is correct? Group of answer choices A steepening of the yield curve could reflect a belief that the central bank will in the future conduct a more restrictive monetary policy than previously thought. The yield curve reflects the relationship between existing short, medium and longer term interest rates, independent of expectations about future interest rates. The yield curve reflects the effect of arbitrage in financial markets not what the current interest rate is in the overnight market. A steepening of the yield curve could reflect long-term government bonds suddenly being seen as a more attractive investment.

Which of the following statements is FALSE? A) The shape of the yield curve will be strongly influenced by interest rate expectations. B) We can use the term structure to compute the present and future values of a risk-free cash flow over different investment horizons. C) It is important to use a discount rate that matches both the horizon and the risk of the cash flows. D) The yield curve tends to be inverted as the economy comes out of a recession. E) None of the above is false.

The existence of an upward-sloping yield curve suggests that:Select one:a.bonds should be selling at a discount to par value.b.bonds will not return as much as common stocks.c.interest rates will be increasing in the future.d.real interest rates will be increasing soon.