What does a flashing yellow light indicate?

A flashing yellow light indicates that drivers should proceed with caution. This signal informs motorists that they need to be aware of potential hazards or changing conditions in the road ahead. It does not require an immediate stop nor does it suggest that drivers should speed up. Instead, drivers should reduce their speed and be prepared to take necessary actions based on the traffic situation, such as yielding to pedestrians or adjusting to other vehicles.

The other choices do not align with the meaning of a flashing yellow light; stopping immediately would be appropriate for a red light, and preparing to yield applies more to stop signs or situations where merging is required. The option to go faster contradicts the principle of driving safely under cautious conditions. Therefore, the correct interpretation is to proceed with caution while remaining alert to any potential dangers.