The yield curve most likely witnessed in the financial markets is a (an)
A) upward sloping yield curve.
B) downward sloping yield curve.
C) flat yield curve.
D) skewed yield curve.

Question

Quizplus · Accepted Answer

An upward sloping yield curve is the most commonly observed shape in the financial markets, indicating that longer-term debt instruments have a higher yield compared to shorter-term instruments, reflecting the increased risk and time value of money over longer periods.

The Yield Curve Most Likely Witnessed in the Financial Markets