C is corrent. A normal yield curve is one in which short-term rates are lower than intermediate-term rates which are lower than long-term rates. Therefore, the curve is upward sloping.
A is incorrect. A downward sloping curve is an inverted yield curve.
B is incorrect. A humped yield curve is one in which short-term rates are lower than intermediate-term rates which are higher than long-term rates. This situation is not normal.
D is incorrect. A flat yield curve is one in which all term rates are equal. This is not the normal situation.
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