An upward-sloping yield curve indicates that Treasury securities with ____ maturities offer ____ annualized yields.
A)longer; lower
B)longer; higher
C)shorter; similar (short-term and long-term annualized yields are the same)
D)shorter; higher

Question

Quizplus · Accepted Answer

An upward-sloping yield curve indicates that longer-term investments have higher annualized yields compared to shorter-term investments. This is typically a sign of a healthy, growing economy where investors demand higher returns for longer commitments of their capital.

An Upward-Sloping Yield Curve Indicates That Treasury Securities with ____