Which of These Is Not a Reason a Business Would

question 1

Multiple Choice

Which of these is not a reason a business would be prepared to accept a bill of exchange in settlement of a debt?

• A) If a legal dispute arises the bill represents a legal, written acknowledgment of the debt and its amount.
• B) Because a bill of exchange has government backing.
• C) A bill is interest-bearing and thereby produces interest for the business granting credit.
• D) A bill is more easily converted into cash than accounts receivable.

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Definitions:

New Deal Democrats

A reference to the followers and supporters of Franklin D. Roosevelt's New Deal programs in the 1930s, advocating for government intervention in the economy to address the Great Depression.

Conservative Democrats

A faction within the Democratic Party in the United States that tends to hold more traditional or conservative views compared to the broader party, especially on social and economic issues.

Harry Hopkins

A close advisor to President Franklin D. Roosevelt during the Great Depression and World War II, prominently involved in the New Deal and Lend-Lease programs.

Works Progress Administration

A key agency of the New Deal program in the United States, created in 1935 to provide public works jobs for the unemployed during the Great Depression.