Which of the following statements pertaining to the yield curve is not true?
A. The yield curve can be flat or downward sloping depending on market conditions.
B. The yield curve shows the difference in default risk between securities.
C. Yield curves usually slope upwards.
D. The yield curve shows the relationship among bonds with the same risk characteristics but different maturities.
Answer: B
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In general, countries with lower rates of growth of labor productivity have
a. lower levels of productivity. b. higher levels of productivity. c. lower levels of educational attainment. d. higher levels of natural resource endowments.
A country is more likely to have net welfare gains when it imposes a tariff on a foreign monopolist if:
a. the tariff is small. b. the tariff is large. c. the tariff revenues are large. d. the deadweight losses are large.
How long does it take prices of securities to adjust so as to eliminate arbitrage profits?
A) seconds B) hours C) days D) months
Accounting profit will always be
A) more than economic profit. B) equal to sunk costs. C) less than economic profit. D) equal to implicit costs.