The yield curve in a foreign country is
A)always downward sloping.
B)nonexistent.
C)the same as in the United States at any point in time.
D)None of these are correct.

Question

Quizplus · Accepted Answer

The yield curve can vary in shape (upward sloping, flat, or inverted) depending on economic conditions, and it exists in every country with a developed bond market. It does not always mirror the shape or position of the yield curve in the United States, as it reflects the economic conditions and interest rate environment of its own country.

The Yield Curve in a Foreign Country Is