Which of the following is NOT true of the yield curve for U.S. Treasury securities?
A)Typically, it slopes upward.
B)It depicts the relationship among yields on securities of different maturities.
C)Typically, it shifts up or down rather than twists.
D)Typically, it slopes downward.

Question

Quizplus · Accepted Answer

The yield curve for U.S. Treasury securities typically slopes upward or is flat, but it rarely slopes downward. This is because longer-term securities generally offer higher yields than shorter-term securities to compensate for the greater risk of inflation and other market factors over a longer time horizon.

Which of the Following Is NOT True of the Yield