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

Question

Quizplus · Accepted Answer

An upward-sloping yield curve indicates that the market expects higher future interest rates. This is because long-term bonds typically have higher yields than short-term bonds, and investors will demand higher yields on long-term bonds if they expect interest rates to rise in the future.

________ Yield Curve Reflects Higher Expected Future Rates of Interest