CFA Practice Test
CFA Economics for Investment Analysis 3
An inverted yield curve (long-term rates below short-term rates) is MOST commonly interpreted as:
Select your answer
A
A signal of high inflation expectations in the future
B
A recessionary signal, as the market expects future short-term rates to fall
C
A sign that the central bank has lost control of monetary policy
D
An indication that long-term bonds are riskier than short-term bonds
Hint
