Seasonal Credit Provided by the Fed Is Not as Common

question 76

Multiple Choice

 Seasonal credit provided by the Fed is not as common as it used to be because: ?

• A) there are fewer banks in seasonal areas.?
• B) other sources for long-term loans have developed for banks in seasonal areas.?
• C) seasonal credit has been replaced by secondary credit.?
• D) seasonal credit is being replaced by primary credit.

---

Definitions:

Fixed Expenses

Costs that do not vary with the level of production or sales, such as rent, insurance, and salaries.

Variable Expenses

Expenses that change in proportion to the activity of a business, such as sales commissions that rise with increased sales or materials costs that rise with increased production.

Discontinue Product

The decision to stop manufacturing, selling, or supporting a product based on criteria such as sales performance, profitability, or strategic alignment.

Open Market

A market with few restrictions on buy-sell transactions, allowing for free competition and prices dictated by supply and demand.