Question 8 (3.3 points)

The following are correct statements related to the Yield Curve, EXCEPT:

Question 8 options:

	The Yield Curve reports the rates on bonds with different levels of maturity.
	An upward sloping yield curve can be explained by the fact that a liquidity premium forces long term rates to be higher than short term rates.
	An inverted yield curve indicates that return on future short term rates are expected to increase.
	An inverted yield curve could predict future recessions.