When the yield curve is upward sloping, this means which of the following?
A)Short-term securities yield more than long-term securities.
B)Short-term securities yield less than long-term securities.
C)Short-term securities yield the same as long-term securities.
D)None of the above are correct.

Question

Quizplus · Accepted Answer

An upward sloping yield curve is often referred to as a normal yield curve, where longer-term securities have higher yields than shorter-term securities. This is because investors generally demand a higher return for tying up their money for a longer period of time.

When the Yield Curve Is Upward Sloping, This Means Which