The Most Common Means of fiNancing a Temporary Cash Deficit

question 99

Multiple Choice

The most common means of financing a temporary cash deficit is a:

• A)long-term secured bank loan.
• B)short-term secured bank loan.
• C)short-term issue of corporate bonds.
• D)long-term unsecured bank loan.
• E)short-term unsecured bank loan.

---

Definitions:

Board of Governors

A leading body of a central banking system, such as the Federal Reserve in the United States, responsible for overseeing the bank's policies and operations.

Appointed

A term referring to individuals who have been selected and assigned roles or positions, often within a governmental or organizational setting, without requiring an election or competitive selection process.

Elected

Refers to the process of choosing or selecting someone to hold a public office or some other position by voting.

Open-Market Operations

Purchases and sales of government securities by the Fed in an effort to influence the money supply.