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AIWMI CCRA-L2 Exam - Topic 9 Question 125 Discussion

In Steepening short term rates ______relative to long term rate
A) falls
B) rises
C) is independent of each other
D) remains constant

AIWMI CCRA-L2 Exam - Topic 9 Question 125 Discussion

Actual exam question for AIWMI's CCRA-L2 exam
Question #: 125
Topic #: 9
[All CCRA-L2 Questions]

In Steepening short term rates ______relative to long term rate

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Suggested Answer: A

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Reena
1 month ago
I’m a bit confused about this one. I thought steepening meant the difference increases, but does that mean short-term rates fall or rise?
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Adelle
1 month ago
I remember a practice question that mentioned how short-term rates can rise when the economy is improving, so I might lean towards option B.
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Willow
2 months ago
I think steepening short-term rates usually means they rise relative to long-term rates, but I'm not completely sure.
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