A) The yield curve is inverted when short-term rates are higher than long-term rates. B) The yield curve is normal when it slopes upward to the right. C) The yield curve is a plot of interest rates versus term, also called the term structure of interest rates. Therefore, all of the above options are correct.

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The Yield Curve Is

Question 68

Multiple Choice

The yield curve is:

A) inverted when short-term rates are higher than long-term rates.
B) normal when it slopes upward to the right.
C) a plot of interest rates versus term, also called the term structure of interest rates.
D) All of the above

Correct Answer: