Which One of the Following Statements Is Correct

question 102

Multiple Choice

Which one of the following statements is correct?

• A) Seasonal needs are financed with short-term loans when companies adhere to a flexible financing policy.
• B) A flexible financing policy tends to increase the risk of encountering financial distress.
• C) Long-term interest rates tend to be less volatile than short-term rates.
• D) Most companies tend to finance inventory with long-term debt.
• E) Short-term interest rates are generally higher than long-term rates.

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Definitions:

Pedal A Tricycle

The act of operating a three-wheeled vehicle using foot pedals to propel it forward.

Rough-And-Tumble

A form of play that involves physical activities such as running, tumbling, and play-fighting, often seen among children and believed to be important for social development.

Large Muscle Groups

The collections of larger muscles in the body that contribute to major movements and activities, such as those in the legs, abdomen, and chest.

Small Muscle Groups

Muscles that control fine movements, primarily located in the hands, feet, face, and eye region.