A yield curve that slopes upward from the lower left to the upper right is called:
a) A Flat Curve
b)A Normal Curve
c)An inverted Curve
d)A Bell Curve
Answer
The correct answer is (b) A Normal Curve.
A normal yield curve is a curve in which long term bonds yield higher yield than short term bonds. This means that as time of maturity increases, Yield also increases and thus A normal yield curve is upward sloping. Hence, the correct answer is (b) A normal curve.
A yield curve that slopes upward from the lower left to the upper right is called:...