Term structure: What is a term structure? What is a yield curve? What instruments are typically depicted in the yield curve? What does it mean for a yield curve to be normal? Flat? Inverted? What is a term premium? Why does it exist? What happens to the yield curve if the term premium increases or decreases? How do expectations of future interest rates affect the yield curve? How can expectations result in an inverted yield curve? How does monetary policy (changes to the federal funds rate) affect the yield curve?