Large Companies Build Up Short-Term Debt Over the Period of 1

question 67

Multiple Choice

Large companies build up short-term debt over the period of 1 to 2 years, then sell long-term debt using a portion of the proceeds to repay the short-term borrowings.This procedure is called:

• A)"drawing down" long-term credit
• B)funding short-term debt
• C)reducing the tax bite
• D)extending the rates

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Definitions:

Risk Levels

The degree to which an investor or business is exposed to potential financial loss or gains.

Standard Deviation

An evaluative statistical figure expressing the level of fluctuation or diversity among values in a particular dataset.

Rate Of Return

A rise or drop in an investment's value within a specific timeframe, shown as a percentage of the investment’s original cost.

TSX

The Toronto Stock Exchange, a major stock exchange in Canada where stocks of companies are bought and sold.