You Are Looking at Acquiring Credit from Four Different Institutions

question 56

Multiple Choice

You are looking at acquiring credit from four different institutions and the rates are as follows: ANZ 20% compounded on a daily basis CBA 20% compounded an a weekly basis NAB 20% compounded on a monthly basis ING 20% compounded on a quarterly basis Which bank will you choose?

• A) ANZ.
• B) NAB.
• C) ING.
• D) CBA.

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Definitions:

Merchandisers

Companies or individuals involved in the business of retailing or wholesaling goods.

Wholesalers

Merchants who buy goods from suppliers and manufacturers for sale to retailers.

Retailers

Merchants who buy goods from wholesalers for resale to customers.

Credit Terms

Conditions under which credit is extended by a seller to a buyer, detailing the repayment period, interest rate, and penalties for late payment.