Which of the Following Is(are) Not Related to the Extension

question 37

Multiple Choice

Which of the following is(are) not related to the extension of credit to customers?

• A)compensating balances
• B)cash discounts
• C)quantity discounts
• D)compensating balances and quantity discounts

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Definitions:

Law of Demand

A fundamental economic principle stating that as the price of a product decreases, demand for it usually increases, and vice versa.

Surpluses

Situations in which the quantity of a good or service supplied exceeds the quantity demanded at the current price.

Market Prices

Refers to the specific values at which commodities, securities, or services are traded in a competitive marketplace.

Shortages

Occur when the demand for a good or service exceeds its supply in a given market, often leading to price increases.