Trade Credit Is Considered What Type of Loan

question 113

Multiple Choice

Trade credit is considered what type of loan?

• A) when a firm owes money to a supplier.
• B) when a firm owes money to a customer.
• C) when a firm owes money to a bank.
• D) all of the answers are true.

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Definitions:

Industrially Advanced Countries

Nations characterized by high levels of industrialization, technological advancement, and economic productivity.

Transfer Payments

are non-exchange transactions where one party (usually the government) provides economic benefits to another without receiving a good or service in return.

Domestic Output

Refers to the total value of all goods and services produced within a country's borders in a given time period, usually measured as GDP.

Tax Revenue

The revenue collected by governments via taxes.