单选题 According to the pure expectations theory, an upward-sloping yield curve implies:

A、 interest rates are expected to decline in the future.
B、 interest rates are expected to increase in the future.
C、 longer-term bonds are riskier than short-term bonds.

【正确答案】 B

【答案解析】According to the expectations hypothesis, the shape of the yield curve results from the interest rate expectations of market participants. More specifically, it holds that any long-term interest rate simply represents the geometric mean of current and future 1-year interest rates expected to prevail over the maturity of the issue.