19. If shorter-term securities have higher annualized yield a. is horizontal b. is upward sloping. c. is downward sloping. alized yields than longer-term securities, the yield curve d. cannot be determined unless we know additional information (such as the le interest rates). additional information (such as the level of market 20. All are required to be members of the Federal Reserve System. a. state banks b. national banks c. savings and loan associations d. finance companies e. state banks AND national banks 21. Assume that annualized yields of short-term and long-term securities are equal. If investors suddenly believe interest rates will increase, their actions may cause the yield curve to a. become inverted. b. become flat c. become upward sloping. d. be unaffected