A(n) ________ yield curve reflects higher expected future rates of interest.
A) upward-sloping
B) flat
C) downward-sloping
D) linear

Question

Quizplus · Accepted Answer

An upward-sloping yield curve, also known as a normal yield curve, occurs when short-term interest rates are lower than long-term interest rates. This indicates that investors expect higher future rates of interest, leading to an upward-sloping curve.

A(n) ________ Yield Curve Reflects Higher Expected Future Rates of Interest