Which of the following statements is not true of the yield curve for U.S. Treasury securities?
A) The yield curve usually slopes upward.
B) The yield curve usually is inverted.
C) The yield curve shows the relationship among securities of different maturities.
D) The yield curve can shift over time.

Question

Quizplus · Accepted Answer

The yield curve usually slopes upward, meaning that securities with longer maturities have higher yields than those with shorter maturities. The yield curve can shift over time, reflecting changes in market expectations and economic conditions. The yield curve shows the relationship among securities of different maturities, helping investors understand the risks and returns of different investments. However, the yield curve usually is not inverted, meaning that shorter-term securities have higher yields than longer-term securities. An inverted yield curve can indicate economic uncertainty and potential recession.

Which of the Following Statements Is Not True of the Yield