Question

Usually yield curves arebut during peak periods of economic expansion yield curves may be Multiple Choice upward sloping, downward sloping downward sloping: sharply peaked downward sloping; upward sloping upward sloping, normally humped

Answer 1

Usually yield curves are upward sloping, but peak periods of economic expansion yield curve may be normally humped

Therefore correct answer is option: Upward sloping; normally humped

During normal economic growth period; generally the yield curve is upward sloping. The yield curves are normally humps during the economic expansion and near the peaks of economic expansion. A humped yield curve is made when expected interest rates first increase and then decline with the maturity increases.