The structure of interest rates existing on investment opportunities over time is known as the flat structure of interest rates.

Question

Quizplus · Accepted Answer

The statement is incorrect. A flat structure of interest rates would indicate that the interest rates on investment opportunities are the same across all maturities, which is not the case. In reality, the structure of interest rates is typically upward sloping, indicating higher interest rates for longer-term investments.

The Structure of Interest Rates Existing on Investment Opportunities Over