The Interest Rate Charged on Secured Short-Term Loans to a Corporation

question 43

Multiple Choice

The interest rate charged on secured short-term loans to a corporation is generally higher than that charged on unsecured short-term loans because

• A) lenders of secured loans must pay more for their funds.
• B) it is costly to negotiate and administer secured loans.
• C) secured loans are less risky than unsecured loans.
• D) the risk of default is lower on secured loans.

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Definitions:

Cross-border Cooperation

Collaborative activities and partnerships between countries, regions, or organizations across national boundaries to achieve common goals.

European Works Council

A body representing workers that operates at a pan-European level in companies with operations in multiple EU countries, aiming to inform and consult employees on transnational company matters.

Type

Referring to a category or class that shares common characteristics or attributes.

NAALC

The North American Agreement on Labor Cooperation, an agreement aimed at improving labor standards and working conditions in Canada, Mexico, and the United States.