All of the Following Statements About Secondary Credit Are True

question 48

Multiple Choice

All of the following statements about secondary credit are true EXCEPT

• A)it may be used to expand a bank's assets.
• B)the secondary credit interest rate is set above the primary credit rate.
• C)it is intended for banks not eligible for primary credit.
• D)borrowers of secondary credit are less financially healthy.

---

Definitions:

BCG Matrix

A strategic analysis tool that helps organizations prioritize their business units or products by categorizing them into four types based on market growth and market share: Stars, Cash Cows, Question Marks, and Dogs.

Cash Flow

Cash flow refers to the net amount of cash and cash-equivalents being transferred into and out of a business.

Question Marks

Products or businesses that operate in high-growth markets but have low market share, often requiring significant investment to improve their position.