2/10, N/30 Is Interpreted as

question 96

Multiple Choice

2/10, n/30 is interpreted as

• A)2% discount if paid within 30 days.
• B)10% cash discount if the whole amount is paid within 2 days, the balance is due in 30 days.
• C)30% discount if paid within 2 days.
• D)30% discount if paid within 10 days.
• E)2% cash discount if the whole amount is paid within 10 days, the balance is due in 30 days.

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Definitions:

Investment Banker

A professional who works in a financial services company or division that specializes in raising capital for companies, governments, or other entities.

Initial Margin

The upfront payment required when opening a position in the futures market, serving as a guarantee for future contract fulfillment.

Primary Market

The market in which new issues of securities are offered to the public.