If the yield curve is near the top of the business cycle and is downward sloping,financial institutions should try to lengthen the maturity of their liabilities.
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Q3: A downward sloping yield curve forecasts higher
Q6: Downward sloping yield curves are viewed briefly
Q7: Between two securities with the same expected
Q8: Securities with a higher probability of default
Q10: The relationship between yield and term to
Q11: The less marketable a security, the higher
Q13: The default risk premium of a security
Q14: The expectations theory allows for a discontinuous
Q15: 'Flight to quality' implies buying bonds with
Q16: The market segmentation theory does NOT allow
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