Match the Term with Its Definition

question 30

Multiple Choice

Match the term with its definition.
-An agreement between a buyer and a seller that allows for delayed payment for a product or service

• A)consumer credit
• B)credit
• C)credit bureaus
• D)credit card
• E)installment account
• F)open charge account
• G)revolving charge account
• H)trade credit
• I)trade-credit agencies
• J)value

Differentiate between long-term and short-term financial risks and their sources.

Recognize the role of financial engineering in managing financial risks.

Comprehend the use of commodity and interest rate hedging strategies to mitigate financial exposure.

Understand the strategic application of financial instruments in corporate risk management and operational planning.

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Definitions:

Expected Pay

The anticipated financial return or compensation a person expects to receive from a job, investment, or other economic activity.

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 and 1.

Hourly Rate

The amount of money paid for one hour of work.

Expected Value

The predicted value of a variable, calculated as the sum of all possible values each multiplied by the probability of its occurrence.