A Type of Short-Term Loan Where the Borrower Sells Its

question 41

Multiple Choice

A type of short-term loan where the borrower sells its receivables to the lender up-front,but at a discount to face value,is called:

• A)a compensating balance.
• B)assigned receivables financing.
• C)a letter of credit.
• D)factored receivables financing.
• E)a bond.

---

Definitions:

Neoclassical Economics

A framework in economics focusing on the determination of goods, outputs, and income distributions in markets through supply and demand, emphasizing rationality and marginal utility.

Sense of Fairness

An individual's perception of the balance and justice in social interactions and distribution of resources.

Dictator Game

A behavioral experiment that tests how fairly individuals act towards others when given the unilateral power to determine the distribution of a resource.

Nudges

Subtle policy measures or cues that encourage people to make decisions that are in their broad self-interest without restricting their freedom of choice.