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    Financial Markets and Institutions Study Set 7
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    Exam 3: Structure of Interest Rates
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    If Interest Rates Are Expected to Decrease, the Yield on New
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If Interest Rates Are Expected to Decrease, the Yield on New

Question 67

Question 67

Multiple Choice

If interest rates are expected to decrease, the yield on new short-term securities may be expected to ____, and the yield curve should be ____ sloping.


A) increase; upward
B) increase; downward
C) decrease; upward
D) decrease; downward

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