💼 Pre-MBA Exam Prep

The yield curve shows the relationship between:

A Stock returns and risk
B Bond yields and their maturities at a given point in time
C GDP and inflation
D Revenue and profit

✓ Correct Answer: Option B

Yield curve: plots interest rates of bonds (usually Treasuries) across different maturities. Normal: upward sloping. Inverted: short-term > long-term (recession indicator). Flat: transitionary.

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