A Major Advantage of Bill Financing Over Other Forms of Short-Term

question 92

True/False

A major advantage of bill financing over other forms of short-term debt such as overdrafts is that the cost is usually lower.

---

Definitions:

Hong Kong Dollars

The official currency of Hong Kong, which is a Special Administrative Region of China.

Futures Price

The agreed-upon price between buyer and seller for the future delivery of an asset, utilized in future contracts.

Risk-free Rate

The theoretical return of an investment with zero risk, typically represented by the yield of government bonds of a stable country.

Spot Exchange Rate

The current price at which one currency can be exchanged for another.