Which of the Following Is Not a Characteristic of a Good

question 30

Multiple Choice

Which of the following is not a characteristic of a good market for goods and services?

• A) Timely and accurate information
• B) Liquidity
• C) Low transaction costs
• D) External efficiency
• E) All of the above are characteristics of a good market.

---

Definitions:

Line of Credit

A financial arrangement providing the borrower the right to draw funds up to a specified limit at any time within a fixed period.

Compensating Balance

A minimum account balance that a borrower is required to maintain as a condition of borrowing from a lender, often used to offset the cost of maintaining the loan.

Accounts Payable Period

The average time it takes for a company to pay off its suppliers.

Credit Sales

Transactions in which goods or services are provided to a customer with the agreement that payment will be made at a later date.