When the yield curve is downward sloping or inverted, this means
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 inverted or downward sloping yield curve indicates that short-term securities yield more than long-term securities, which is often seen as a predictor of economic recession.

When the Yield Curve Is Downward Sloping or Inverted, This