The Yield Curve or the Term Structure of Interest Rates

Multiple Choice

The yield curve or the term structure of interest rates is typically downward sloping when:

A) short-term Treasury interest rates are lower than long-term Treasury interest rates
B) short-term and long-term Treasury interest rates are the same
C) long-term Treasury interest rates are lower than short-term Treasury interest rates
D) long-term Treasure interest rates are higher than short-term Treasury interest rates