All of the Following Statements About Secondary Credit Are True

question 124

Multiple Choice

All of the following statements about secondary credit are true EXCEPT

• A) they are temporary, short-term loans to satisfy seasonal requirements.
• B) the secondary credit interest rate is set above the primary credit rate.
• C) it is intended for banks not eligible for primary credit.
• D) borrowers of secondary credit are less financially healthy.

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Definitions:

Element

A pure chemical substance consisting of one type of atom, distinguished by its atomic number, which is the number of protons in its nucleus.

Isotope

Atoms of the same element that have different numbers of neutrons in their nuclei, leading to different atomic masses but the same chemical behavior.

Neutrons

Tiny particles located within an atom's nucleus, possessing no electrical charge and having a mass that is marginally higher than protons.

Isotope

Variants of an element that contain the same number of protons but different numbers of neutrons in their nuclei.