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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