In the figure above, item 2 is a set of ______________________.
Definitions:
Trade Credit
A financial arrangement where a buyer is allowed to purchase goods or services and pay for them at a later date.
Rate of Interest
The percentage of a loan amount charged for borrowing money, expressed as an annual percentage of the principal.
Cash Discount
A reduction in the price paid for goods or services if payment is made in cash or within a certain time period.
Balance Sheet Hedge
A financial strategy used to limit or offset the risk of currency exchange rate fluctuations affecting a company's balance sheet.
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