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2 5. What is the yield curve? a) A graph showing the relationship between bond yields and maturity b) A curve showing the relationship between

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5. What is the yield curve? a) A graph showing the relationship between bond yields and maturity b) A curve showing the relationship between interest rates and GDP growth c) A measure of the risk of a particular investment d) A curve showing the relationship between inflation and unemployment 6. What does an inverted yield curve indicate? a) A recession is imminent b) Economic growth is likely to accelerate c) Inflation is likely to rise d) Interest rates are likely to stay the same 7. What is a steep yield curve? a) A curve where long-term interest rates are significantly higher than short-term interest rates b) A curve where short-term interest rates are significantly higher than long-term interest rates c) A flat yield curve d) A curve where interest rates remain constant over time 8. What is the most common shape of the yield curve? a) Inverted b) Steep c) Flat d) Upward-sloping

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