Generally speaking, an upward-sloping yield curve can be expected when: A. the supply of long-term funds falls short of demand. B. the supply of long-term funds falls short of demand and investors begin to show a preference for more liquid/less risky short-term securities. C. inflationary...
A.yield curve should be upward-sloping. B.yield curve should be downward-sloping. C.shape of the yield curve reflects the risk premium incorporated into the yields on long-term bonds. D.shape of the yield curve depends on the expected future path of short-term interest rates. 答案:D (1...
When demand for loanable funds outstrips supply, interest rates can be expected to rise in that (long-term) segment of the market; also, more preference for short-term securities can be expected to drive up long-term rates as the liquidity premium rises. Thus, both circumstances in the answe...
A、short-term interest rates to rise sharply. B、short-term interest rates to drop sharply. C、short-term interest rates to stay near their current levels. D、none of the above. 查看答案
Answer and Explanation:1 The correct answer is: b) during a recession When the inflation rate drops below 0% and there is a decrease in the price levels of goods and services...
As the shape of the yield curve changes during the full business cycle, one can see the tangible impacts onnet incomefor banks and finance companies. When the yield curve is upward sloping, bank and commercial finance profitability are good. When it is inverted, profitability suffers. When it...
Bond yield is the return on investment from a given bond, calculated by evaluating several factors. Explore the determinants of bond returns, bond yields, and the yield curve including initial prices and yield changes over time. Related to this Question...
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