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

Question

Quizplus · Accepted Answer

A downward-sloping yield curve, also known as an inverted yield curve, suggests that the bond market is anticipating lower interest rates in the future. This is because investors are rushing to buy long-term bonds, which drives down their yields, in anticipation of lower rates later on.

________ Yield Curve Reflects Lower Expected Future Rates of Interest