A Dot Triad Is a Grouping of

question 5

Multiple Choice

A dot triad is a grouping of

• A) one red dot,one green dot,and one yellow dot.
• B) one green dot,one blue dot,and one yellow dot.
• C) one red dot,one blue dot,and one yellow dot.
• D) one green dot,one blue dot,and one red dot.

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Definitions:

Collateral

An asset that a borrower offers to a lender as a security for a loan, which can be seized if the loan is not repaid.

Credit Cost Curve

Graphical representation of the sum of the carrying costs and the opportunity costs of a credit policy.

Carrying Costs

Expenses associated with holding inventory, including storage, insurance, and opportunity costs.

Opportunity Costs

The cost of foregoing the next best alternative when making a decision.