What Determines the Creditworthiness of Any Organization, Including the Federal

question 88

Multiple Choice

What determines the creditworthiness of any organization, including the federal government?

• A) The size of its debt relative to its income base.
• B) The interest rate at which it can borrow money.
• C) The length of time it has existed.
• D) The length of time it is expected to operate.

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Definitions:

Oral Agreement

An oral agreement is a contract whose terms have been agreed upon by speaking rather than in writing, which can be legally binding, depending on the context and jurisdiction.

Consideration

The value (such as money, services, or goods) that is promised to be transferred in a contract, creating a binding obligation.

Merchant Customer

A consumer who has a commercial relationship with a business or merchant, typically involving the purchase of goods or services.

Dispatch

The act of sending something or someone to a specific destination or for a certain purpose.