Which of the following statements in not true of the yield curve for U.S. Treasury securities?
A) The yield curve usually slopes upward
B) The yield curve usually has a positive slope at first then becomes 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 does slope upward, shows the relationship among securities of different maturities, and can shift over time. However, it does not usually have a positive slope at first and then become inverted. In fact, an inverted yield curve (where shorter-term yields are higher than longer-term yields) is considered rare and can be an indicator of an impending economic recession.

Which of the Following Statements in Not True of the Yield