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AIWMI CCRA-L2 Exam - Topic 9 Question 118 Discussion

Actual exam question for AIWMI's CCRA-L2 exam
Question #: 118
Topic #: 9
[All CCRA-L2 Questions]

In Steepening short term rates ______relative to long term rate

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Suggested Answer: A

by Jaime at Oct 27, 2025, 09:03 AM

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Lindsay
23 days ago
But historically, A is often true. Short rates fall when long rates rise.
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Irma
28 days ago
I agree, B is the right choice. Short rates go up first.
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Kristine
1 month ago
Definitely B) rises, that's classic finance!
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Janine
1 month ago
Wait, are we sure about that? Seems counterintuitive.
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Elli
1 month ago
Totally agree, it's all about that yield curve!
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Wei
2 months ago
Short-term rates rise when the curve steepens.
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Daren
2 months ago
Steepening, huh? Sounds like a fun day at the skate park! Oh wait, wrong kind of steepening...
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Hyman
2 months ago
D) remains constant? What is this, a trick question? Of course the rates don't just stay the same when they're steepening.
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Kimberlie
2 months ago
C) is independent of each other? Haha, no way! Short and long term rates are definitely related, that's just basic economics.
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Arlene
2 months ago
I thought steepening meant that short-term rates remain constant while long-term rates rise, but that doesn't seem to fit any of the options.
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Janine
2 months ago
I feel like I might be mixing up concepts here. Is it possible that short-term rates could fall while long-term rates rise?
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Arlette
3 months ago
I remember practicing a similar question where the answer was about the relationship between short and long-term rates. Could it be option B?
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Susy
3 months ago
A) falls? Really? That doesn't make any sense. The question is clearly asking about steepening, not flattening.
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Salina
3 months ago
B) rises, that's the correct answer. Steepening short term rates means they are increasing relative to the long term rate.
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Peggie
3 months ago
I think it rises. Makes sense with the economy heating up.
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Glenn
3 months ago
I’m not so sure. C seems plausible too. They can act independently.
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Glennis
4 months ago
I thought they could be independent sometimes?
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Candra
4 months ago
I think steepening short-term rates usually means they rise relative to long-term rates, but I'm not entirely sure.
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Stephanie
4 months ago
Okay, I think I got this. Steepening means the short-term rates are increasing more than the long-term rate, so the answer is B) rises. I'll double-check my work, but I'm feeling confident about this one.
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Jackie
4 months ago
This seems straightforward. If the short-term rates are steepening, that means they are rising in comparison to the long-term rate, so the answer has to be B) rises.
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Portia
4 months ago
I'm a little confused on this one. Is steepening the same as the short-term rates increasing? I'll have to review my notes to make sure I understand the relationship between the short and long-term rates.
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Andra
5 months ago
Okay, I remember learning about this in class. I'm pretty sure the answer is B) rises, since steepening the yield curve means the short-term rates are increasing relative to the long-term rates.
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Floyd
5 months ago
Hmm, I think this has to do with the yield curve and how the short-term and long-term rates are related. I'll need to think through the different scenarios to determine which one makes the most sense.
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Brianne
4 days ago
I believe short-term rates rise relative to long-term rates.
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