Which One of the Following Factors Tends to Favor Longer

question 94

Multiple Choice

Which one of the following factors tends to favor longer credit periods?

• A)high consumer demand
• B)lower priced merchandise
• C)increased credit risk
• D)merchandise with low collateral value
• E)increased competition

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Definitions:

Tax Implications

The potential tax effects or consequences of business transactions, personal income, or investment decisions.

Call Provisions

Clauses in bond contracts that allow the issuer to repay the bond before its maturity date, often at a premium price.

Secured Bonds

Bonds that are backed by collateral, reducing the risk for investors and often resulting in a lower interest rate.

Bearer Bonds

Financial securities that are issued as physical certificates and do not record the owner's name, with interest and principal paid to the holder of the certificate.