An Upward-Sloping Term Structure of Interest Rates Indicates That

Multiple Choice

An upward-sloping term structure of interest rates indicates that:

A) longer-term rates are higher than shorter-term rates.
B) investors should expect interest rates to decline in the future.
C) short and intermediate term rates are real rates while long term rates are nominal rates.
D) the Fed is expected to decrease rates in the near term.
E) the larger the investment in dollars,the higher the interest rate paid.