Financial Planner

Category - Investment Planning

What is used to show yields for bond maturities to determine the best value in bonds as an economic indicator?
  1. Yield Curve
  2. Deflation Curve
  3. Inflation Marker
  4. National Indicator
Explanation
Answer: A - The yield curve is used to show yields for bond maturities to determine the best value in bonds as an economic indicator. A positive curve indicates an expanding economy while a negative curve indicates a slow or decreased economy. The yield curve is indispensable since it helps to give an idea of future interest rate change and economic activity.
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