Generally, More Use Is Made of Short-Term Financing Because

question 49

Multiple Choice

Generally, more use is made of short-term financing because

• A) short-term interest rates are generally lower than long-term interest rates.
• B) most firms do not have easy access to the capital markets.
• C) short-term financing is usually more predictable than long-term financing.
• D) two of the answers are correct.

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Definitions:

Proximodistal

A pattern of development where growth starts at the center of the body and moves towards the extremities.

Proximodistal

Describes the pattern of development that proceeds from the center or core of the body outwards towards the extremities.

Cephalocaudal

A pattern of growth and development where physical and motor skills progress from the head downwards to the rest of the body.

Central Part

An essential or core component of something that plays a crucial role in its functioning or structure.