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    Principles of Money Banking
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    Exam 5: The Term and Risk Structure of Interest Rates
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    If the Yield on Long-Term Securities Is Greater Than the Yield
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If the Yield on Long-Term Securities Is Greater Than the Yield

Question 32

Question 32

Multiple Choice

If the yield on long-term securities is greater than the yield on comparable short-term securities, the yield curve will be


A) negatively sloped.
B) positively sloped.
C) in the negative quadrant.
D) undefined.

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