An Inverted Yield Curve

Multiple Choice

An inverted yield curve

A) Exists when short-term rates exceed long-term rates.
B) Exists when long-term rates exceed short-term rates.
C) Represents the "normal term structure."
D) Signifies that investors can get higher returns by investing in bonds than by investing in stocks.
E) Signifies that investors can get higher returns on stocks than on bonds.