The yield curve for U.S. Treasury securities allows us to draw the following conclusions, except that:
A) long-term yields tend to higher than short term yields.
B) interest rates of different maturities tend to move.
C) long-term rates tend to equal short-term rates.
D) yields on short-term securities are more volatile than yields on long-term bonds.

Question

Quizplus · Accepted Answer

The yield curve for U.S. Treasury securities typically shows that long-term yields tend to be higher than short-term yields (A), and that interest rates of different maturities tend to move in tandem (B). However, it is not true that long-term rates tend to equal short-term rates (C). Additionally, yields on short-term securities are typically more volatile than yields on long-term bonds (D).

The Yield Curve for U