One Advantage of Level Production Is That

When the term structure of interest rates is downward sloping and interest rates are expected to decline, the: A) financial manager generally borrows short-term. B) financial manager borrows at the lower long-term rates. C) corporation's ratio of short-term to long-term debt is low. D) financial managers view short-term rates as high risk.

Which of the following is a true statement concerning interest rates? A) Short-term rates are not influenced by inflation B) Long-term rates are influenced by current demands for money. C) During 1990 the term structure of interest rates formed an inverted yield curve. D) During 2016 the term structure of interest rates formed an inverted yield curve.