Question 10
An upward sloping yield curve shows:
Short-term rates are higher than long-term rates.
Short-term rates are lower than long-term rates.
Maturity is irrelevant.
It is one of the indications of upcoming recession.
An upward sloping yield curve shows:
Short-term rates are higher than long-term rates.
Short-term rates are lower than long-term rates.
Maturity is irrelevant.
It is one of the indications of upcoming recession.
Correct answer
Short-term rates are lower than long-term rates.
Question 10 of 25 in the IIT Madras BS Corporate Finance (Corporate Finance) Quiz 1 paper sat on 26 Oct 2025, in the September 2025 term (IIT M DEGREE AN EXAM QDB2 26 Oct 2025). It carries 4 marks.