A normal yield curve is:
A) upward sloping.
B) flat.
C) downward sloping.
D) humped.
E) U-shaped.

Name: A normal yield curve is: A) upward sloping. B) flat. C) downward sloping. D) humped. E) U-shaped.
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Question

Quizplus · Accepted Answer

A normal yield curve is upward sloping, indicating that long-term interest rates are higher than short-term interest rates. This is the standard shape of a yield curve in a healthy economy where investors demand higher returns for tying up their money for longer periods of time.

A Normal Yield Curve Is