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ACI

3I0-012 · Question #275

A negative yield curve is one in which:

The correct answer is A. Longer rates are lower than short rates. See the full explanation below for the reasoning.

Question

A negative yield curve is one in which:

Options

  • ALonger rates are lower than short rates
  • BForward exchange rates are at a discount
  • CShort term rates are lower than long
  • DForward exchange rates are a premium

How the community answered

(47 responses)
  • A
    72% (34)
  • B
    9% (4)
  • C
    2% (1)
  • D
    17% (8)

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