Over the Years, Zebra Productions Has Been Slow Making Payments

question 207

Multiple Choice

Over the years, Zebra Productions has been slow making payments to its bank. Now it is in need of financing. Based on past experience, the interest rate Zebra will pay is the

• A) interest rate determined by the SBA.
• B) finance rate determined by the Department of Commerce.
• C) prime rate.
• D) prime rate plus 4 percent.
• E) prime rate minus 2 percentage points.

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Definitions:

Trade Surplus

A situation where the value of a country's exports exceeds the value of its imports, indicating a positive balance of trade.

Exports

Goods or services produced in one country and sold to buyers in another, contributing to the exporting country's GDP.

Imports

Goods and services bought by a country from foreign markets.

Trade Surplus

A situation where a country's exports exceed its imports for a given period, leading to a positive balance of trade.