Which of the Following Statements Is Most Correct

question 102

Multiple Choice

Which of the following statements is most 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 can usually 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 is actually 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:

Optometrist

A healthcare professional who provides primary vision care, ranging from sight testing and correction to the diagnosis, treatment, and management of vision changes.

Lens

The transparent disk-shaped structure behind the iris and the pupil that changes shape as it focuses on objects at varying distances.

Cornea

The transparent front part of the eye that covers the iris, pupil, and anterior chamber, providing most of the eye's optical power.

Pupil

The adjustable opening in the center of the iris of the eye, through which light enters and is focused on the retina.