Select all true statements

Question options: 1

	The yield curve depicts the rate (yield) of securities with different terms to maturity
	If the yield curve is upward sloping, then you can conclude that the yield of short term securities is lower than the yield of long term securities
	an "inverted" yield curve is an indication that the rates of short and long term bonds are identical
	The yield curve is fixed and never changes over time

Select all true statements

Question options: 2

	The Liquidity Premium measures the issuer's ability to repay a loan
	The maturity risk premium for a 3 year bond is lower than the maturity risk premium of a 12 year bond
	The Inflation premium that applies to a particular bond, reflects the forecasts of inflation for the term of the bond
	Treasury Bonds always have zero maturity risk premium

Select all true statements

Question options: 3

	As the return of productive opportunities increases, more people and businesses will be willing to save
	If more people decide to save, the demand for loans increases, leading to higher rates
	As the return of productive opportunities increases, more people and businesses will be willing to borrow
	If more people decide to save, the supply of loans increases, leading to lower rates