Which of the Following Statements Is Correct

question 157

Multiple Choice

Which of the following statements is correct?

• A) Under normal conditions,the shape of the yield curve implies that the interest cost of short-term debt is greater than that of long-term debt,although short-term debt has other advantages that make it desirable as a financing source.
• B) Flexibility is an advantage of short-term credit but this is somewhat offset by the higher flotation costs associated with the need to repeatedly renew short-term credit.
• C) A short-term loan usually can be obtained more quickly than a long-term loan but the penalty for early repayment of a short-term loan is significantly higher than for a long-term loan.
• D) Statements about the flexibility,cost,and riskiness of short-term versus long-term credit are dependent on the type of credit that actually is used.
• E) Short-term debt is often less costly than long-term debt and the major reason for this is that short-term debt exposes the borrowing firm to much less risk than long-term debt.

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Definitions:

Mediastinum

An anatomical region in the central part of the thoracic cavity, between the lungs, containing the heart, esophagus, trachea, thymus, and associated structures.

CPR

Cardiopulmonary resuscitation, a life-saving emergency procedure that combines chest compressions and breaths to support circulation and oxygenation during cardiac arrest.

Generating Blood Pressure

The process by which the heart and blood vessels work together to maintain the force of the blood against the walls of the arteries.

Pulmonary Circulation

The portion of the cardiovascular system which carries deoxygenated blood away from the heart, to the lungs, and returns oxygenated blood back to the heart.