According to the pure expectations theory,

问题单项选择题

According to the pure expectations theory, an upward-sloping yield curve implies:（）

A. interest rates are expected to decline in the future.

B. interest rates are expected to increase in the future.

C. longer-term bonds are riskier than short-term bonds.

答案

参考答案：B

解析：

According to the expectations hypothesis, the shape of the yield curve results from the interest rate expectations of market participants. More specifically, it holds that any long-term interest rate simply represents the geometric mean of current and future 1-year interest rates expected to prevail over the maturity of the issue.