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

question 120

Multiple Choice

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

• A) short-term financing is usually more predictable than long-term financing.
• B) most firms do have easy access to the capital markets.
• C) short-term interest rates are generally higher than long-term interest rates.
• D) short-term interest rates are generally lower than long-term interest rates.

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Definitions:

Comparative Inference

A method of reasoning and drawing conclusions based on the comparison between different cases, data sets, or scenarios.

Familiarity

Close acquaintance with or knowledge of something.

Familiarity Criterion

A standard whereby something is judged or evaluated based on how well known or recognized it is.

Comparative Reasoning

A method of thinking or analysis that involves comparing different entities, ideas, or scenarios to understand their similarities, differences, and implications.