Which One of the Following Statements Is Correct

question 10

Multiple Choice

Which one of the following statements is correct?

• A) The assignment of receivables involves selling accounts receivables at full price.
• B) Lines of credit frequently require a cleanup period.
• C) With maturity factoring, the borrower receives the loan amount immediately.
• D) Commercial paper is short-term financing offered to highly rated corporations by major banks.
• E) Credit card receivables funding is a relatively inexpensive method of borrowing on a short-term basis.

Recognize the role of extrinsic and intrinsic motivation in fostering creativity and innovation.

Appreciate the role of positive affect and mood in making progress on innovative work.

Understand the role and impact of deception in psychological research.

Design and evaluate experiments, including the formulation of hypotheses, identification of variables, and the importance of reliability in research.

---

Definitions:

Duration

A metric indicating how the price of a bond or another type of debt instrument reacts to interest rate fluctuations, usually denoted in years.

Interest Rates

The cost of borrowing money or the return on investment for savings, typically expressed as a percentage.

Interest Sensitivity

The degree to which the price of a financial asset responds to changes in interest rates.

Coupon

In finance, a coupon refers to the annual interest payment made to bondholders, expressed as a percentage of the bond’s face value.