The yield curve shows the difference between
A) short-term and long-term exchange rates.
B) short-term and long-term unemployment rates.
C) short-term and long-term interest rates.
D) short-term and long-term inflation rates.

Question

Quizplus · Accepted Answer

The yield curve shows the difference between short-term and long-term interest rates, typically for government bonds. It is a graphical representation that plots the interest rates at a set point in time of bonds having equal credit quality but differing maturity dates.

The Yield Curve Shows the Difference Between