Question

A(n) ________ is a graphic depiction of the relation between the maturity and rate of return for bonds with similar risks.

Select one:

a. yield curve

b. risk-return profile

c. aggregate demand curve

d. supply function

Answer 1

Yield curve is a graphical representation of the relation between maturity and the rate of return for bonds, with the similar risks because yield curve is representing the bond yields for different bonds on graph and it is also used to depict the various types of economic cycle due to demand of various types of bonds yields.

Risk return profile for aggregate demand curve and supply function are not the appropriate term.

Correct answer is option (A) Yield Curve.