Investors can use publicly available financial data to determine which of the following? I) The shape of the yield curve
II. Expected future short-term rates (if liquidity premiums are ignored)
III. The direction the Dow indexes are heading
IV. The actions to be taken by the Federal Reserve
A)I and II
B)I and III
C)I, II, and III
D)I, III, and IV

Question

Quizplus · Accepted Answer

Publicly available financial data such as Treasury yield curve data can be used by investors to determine the shape of the yield curve and expected future short-term rates (if liquidity premiums are ignored). However, it cannot be used to determine the direction of Dow indexes or the actions to be taken by the Federal Reserve.

Investors Can Use Publicly Available Financial Data to Determine Which