If the yields on short-term securities are lower than comparable long-term securities,the yield curve will be:
A) level.
B) negative.
C) positive.
D) undefined.

Question

Quizplus · Accepted Answer

When yields on short-term securities are lower than those on comparable long-term securities, the yield curve is positive, indicating that longer-term investments have a higher yield, which is typical in normal market conditions.

If the Yields on Short-Term Securities Are Lower Than Comparable