long-term borrowing

  1. The consume of long-term borrowing is usually loftier than the consume of short-term borrowing. The graph that shows the correlativeness betwixt ripeness and curiosity-behalf rates for U.S. Government’s borrowings (Treasuries) is designated “term organization of the curiosity-behalf rates” or “the furnish flexion”. Shape of the furnish flexion is repeatedly used by economists to apprehend forthcoming standing of the dispensation.
  2. 1. Discuss why long-term rates are usually loftier than short-term rates (upward furnish flexion) 
  3. 2. Discuss underneathneath what economic stipulations long-term rates influence not be loftier than short-term rates (mawkish or inverted furnish flexion). 
  4. 3. Go to http://www.bloomberg.com, brows uncertain links on the position, furnish the furnish flexion for the day of your inquiry, and 
  5. 4. Interpret your notice of the furnish flexion.

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