The Most Important Source of Short-Term Financing Is

question 83

Multiple Choice

The most important source of short-term financing is:

• A) Stretching payables
• B) Issuing bonds
• C) Bank loan
• D) All of the above

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Definitions:

Induced Consumption

Consumption that changes in response to changes in income or wealth, as opposed to autonomous consumption, which does not change when income changes.

Disposable Income

The amount of money that households have available for spending and saving after income taxes have been deducted.

Average Propensity

The average tendency of an entity (such as a household) to spend a portion of income; can pertain to consumption or saving.

Disposable Income

Disposable income is the portion of an individual's or household's earnings left over for savings and expenditures after paying off income taxes.