The yield curve most frequently observed over the years is:
A) positively sloped.
B) negatively sloped.
C) flat.
D) hump-backed.

Question

Quizplus · Accepted Answer

The yield curve has been observed to be positively sloped on most occasions. This means that long-term interest rates are higher than short-term interest rates. This is because investors demand a higher return for tying up their money for a longer period and taking on the risk of inflation and other economic uncertainties.

The Yield Curve Most Frequently Observed Over the Years Is