A downward-sloping yield curve indicates that Treasury securities with ____ maturities offer ____ annualized yields.
A)longer; lower
B)longer; higher
C)shorter; lower
D)shorter; the same (short-term and long-term annualized yields are the same)

Question

Quizplus · Accepted Answer

A downward-sloping yield curve indicates that longer-term Treasury securities offer lower annualized yields compared to shorter-term securities. This is typically seen as a predictor of economic downturns.

A Downward-Sloping Yield Curve Indicates That Treasury Securities with ____