单选题
A downward sloping yield curve generally implies:
A. interest rates are expected to increase in the future.
B. longer-term bonds are riskier than short-term bonds.
C. interest rates are expected to decline in the future.
【正确答案】
C
【答案解析】Since a yield curve has time on the x-axis and rates on the y-axis, when the yield curve is downward sloping it means that rates are expected to decline.