Question #14
Reading: Reading 25 The Term Structure and Interest Rate Dynamics
PDF File: Reading 25 The Term Structure and Interest Rate Dynamics.pdf
Page: 5
Status: Incorrect
Correct Answer: A
Your Answer: B
Question
To jump start a sluggish economy could most likely lead to a:
Answer Choices:
A. bullish steepening
B. bearish flattening
C. bearish steepening
Explanation
During recessionary times, central banks may reduce short-term rates leading to a bullish
steepening.