n NISM Certifications
NSM General NISM
Medium

What will be the shape of the term structure if the difference between long-term rate and short-term rate is zero?

Practice question from NISM Series IV - Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Normal

  2. Flat (Correct)

    Correct answer

  3. C

    Inverted

  4. D

    Abnormal

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

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