1.Why does the natural order of the yield curve go from bottom left to top right?

a.Because short-term bonds carry more risk than long-term bonds.

b.Because there is a greater chance of economic disruptions over the long run.

c Because government borrowing rates are typically higher for short-term debts. which is the correct option?

2.A multinational retail company based in the United States imports products from China and pays its suppliers in Chinese yuan (CNY). If the exchange rate between the US Dollar (USD) and the Chinese Yuan (CNY) changes from 1 USD 0=6.50 CNY to 1 USD 6.20 CNY, what impact = would this exchange rate movement have on the company's import costs in USD terms? a.No impact on import costs b. Decrease in import cost c.Increase in import cost. which is correct option.