CFA Practice Question

There are 266 practice questions for this study session.

CFA Practice Question

If a central bank is engaging in an expansionary monetary policy, it will most likely result in a(n) ______ term structure of yield volatility.

A. downward-sloping
B. flat
C. upward-sloping
Correct Answer: A

It will most likely cause greater volatility in the short-term bond yields than in the longer-term bonds.

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