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4. Which of these statements characterize(s) a “normal” yield curve?

 

  • It is indicative of a restrictive monetary policy being conducted by the central bank.
  • It is indicative of an easy monetary policy being conducted by the central bank.
  • The yield of bonds with a shorter maturity are higher than that of bonds with a longer maturity.
  • The yield of bonds with a shorter maturity are lower than that of bonds with a longer maturity.
  • The yield of bonds of all maturity are the same.

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