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mock exam

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › mock exam

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • August 15, 2016 at 5:43 pm #333383
    jingdong
    Participant
    • Topics: 88
    • Replies: 115
    • ☆☆☆

    Dear tutor, I am confusing this question, which of following statement are correct?
    when interest rates are expected to fall, the yield curve could be sloping downwards.
    this sentence was chosen to be not correct, but in past paper one discuss question: mention about expectation theory saying that this theory suggests that the relationship between short-term and long term interest rates can be explained by expectations regarding interest rate movements. where future interest rates are expected to rise compared to short-term interest rates, the yield curve will slope upwards. where future interest rates are expected to fall compared to short-term interest rates, the yield curve will slope downwards.

    August 16, 2016 at 4:56 am #333440
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54804
    • ☆☆☆☆☆

    I do not know which mock exam you are asking about.

    If interest rates are expected to fall then the yield curve will slope downwards.

    In our mock exam, this statement is marked as being correct in one of the questions.

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