The yield curve is typically:
A)downward sloping.
B)upward sloping.
C)flat.
D)inverted.
E)fluctuating.

Question

Quizplus · Accepted Answer

The yield curve is typically upward sloping, meaning that longer-term bonds have higher yields than shorter-term bonds. This is because investors are typically compensated for taking on more risk with longer-term investments. However, the shape of the yield curve can change depending on different factors such as economic conditions and changes in the Federal Reserve's monetary policy.

The Yield Curve Is Typically