Discuss AIWMI CCRA-L2 Exam Topic 9 Question 125

In Steepening short term rates ______relative to long term rate

Afalls

Brises

Cis independent of each other

Dremains constant

Suggested Answer: A

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21 comments · newest first

Lizette 1 month ago

I feel confident about B) rises. It aligns with current trends.

Norah 1 month ago

D) remains constant? Nah, that’s not realistic in this scenario.

Cammy 2 months ago

C) is independent seems unlikely. Rates are usually connected.

Van 2 months ago

A) falls could be a trick option. But I lean towards B) too.

Irma 2 months ago

I agree, B) rises makes sense. Economic growth pushes rates up.

Theola 2 months ago

I think the answer is B) rises. Short-term rates usually go up.

Hermila 2 months ago

I lean towards B) rises too. Historical trends support it.

Gail 3 months ago

I feel like C) is independent could be a trick. But B) seems safer.

Glenn 3 months ago

No way, it's definitely B) rises. Inflation expectations drive it.

Carylon 3 months ago

I'm not sure. Could it be A) falls? Sometimes short-term rates drop.

Sheldon 3 months ago

I agree, B) rises makes sense. Economic growth pushes rates up.

Vallie 3 months ago

I think the answer is B) rises. Short-term rates usually go up.

Annelle 3 months ago

I thought they were independent, but I guess not!

Tonette 4 months ago

I think it’s a classic case of B.

Ollie 4 months ago

Wait, are we sure about that? Sounds off.

Renea 4 months ago

Totally agree, it's B for sure!

Katina 4 months ago

Short term rates rise compared to long term rates.

Lizette 4 months ago

I feel like I’ve seen something similar before, and I think it was about how short-term rates tend to rise when the Fed is tightening policy. So, I’m leaning towards B.

Reena 6 months 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?

Adelle 6 months 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.

Willow 6 months ago

I think steepening short-term rates usually means they rise relative to long-term rates, but I'm not completely sure.

AIWMI CCRA-L2 Exam - Topic 9 Question 125 Discussion