Generally, More Use Is Made of Short-Term Financing Because

question 23

Multiple Choice

Generally, more use is made of short-term financing because

• A) short-term interest rates are generally lower than long-term interest rates.
• B) most firms do not have basic access to the capital markets.
• C) short-term financing is usually more predictable than long-term financing.
• D) short-term interest rates are generally lower than long-term interest rates and most firms do not have basic access to the capital markets.

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Definitions:

Material Requirements Planning

A production planning and inventory control system used to manage manufacturing processes by determining material requirements based on forecasted production.

Finite Nature

Characterizes systems or resources with limits or boundaries, indicating they cannot be extended indefinitely.

Noise Traders

Investors who make decisions based on random or irrelevant information, often causing market prices to deviate from their true values.