Accounts Receivable Financing, Especially the Factoring of Accounts, Is a Very

question 52

True/False

Accounts receivable financing, especially the factoring of accounts, is a very flexible source of funds.Once the factoring procedure has been established, funds from this type of financing will automatically increase as the firm increases its sales.

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Definitions:

Interest Rates

The cost of borrowing money or the return on investment, expressed as a percentage.

Expansionary Monetary Policy

A form of monetary policy where the central bank increases the money supply and decreases interest rates to stimulate economic growth.

Net Exports

The value of a country's total exports minus its total imports, representing the net effect of international trade on an economy’s spending balance.

Demarcation

The act of setting boundaries or distinguishing differences between things, often used to establish sectors within fields or professions.