There Is More Risk Associated with Short-Term Debt Than Long-Term

question 75

Multiple Choice

There is more risk associated with short-term debt than long-term debt because of:

• A)uncertainty arising from interest rate fluctuations.
• B)the risk of being unable to refund the debt.
• C)relatively high cost of short-term debt.
• D)a and b

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Definitions:

Chronic Glomerular Nephritis

A long-term kidney condition marked by inflammation and damage to the glomeruli, impairing kidney function.

Renal Failure

A medical condition where the kidneys lose the ability to filter waste products from the blood effectively.

Cystitis

An inflammation of the bladder, often caused by infection and characterized by frequent, painful urination.

Inflammation

A biological response of body tissues to harmful stimuli, such as pathogens, damaged cells, or irritants, characterized by redness, swelling, heat, and pain.