n NISM Certifications
XIII NISM Series XIII
Medium

Implication of 'Inverted' shape of the term structure?

Practice question from NISM Series XIII for SIF - Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Rate high for medium term, falls off sides

  2. B

    Rate same for all terms

  3. C

    Longer term, higher rate

  4. Rate rises then falls with term

    Correct answer

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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