Short-Term Financing Not Backed by Collateral Is Called

question 119

Multiple Choice

Short-term financing not backed by collateral is called

• A) debt capital.
• B) unsecured financing.
• C) mortgage bonds.
• D) trade credit.
• E) unprotected financing.

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Definitions:

Price

The financial sum necessary for acquiring a good or service.

Willingness to Pay

The utmost expenditure an individual is comfortable making on a good or service, demonstrating the value they attribute to it.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, indicating economic welfare.

Market Price

The present cost at which a good or service can be purchased or sold within a competitive market.