Which One of the Following Is Most Likely to Discourage

question 66

Multiple Choice

Which one of the following is most likely to discourage purchasers from taking a discount?

• A) A higher discount percentage
• B) A shorter payment period
• C) A longer discount period
• D) A longer payment period

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Definitions:

Subprime Mortgages

are loans granted to borrowers with low credit scores, posing a higher risk of default.

Credit Ratings

Assessments made by credit rating agencies regarding the creditworthiness of an issuer of certain types of debt, including corporations and government entities, impacting interest rates and terms of loans.

Call Provision

A clause in a bond or other fixed-income security agreement that allows the issuer to repurchase and retire the debt before its maturity date, typically at a premium price.

Redeem Provision

A clause in a financial contract allowing the holder to exchange a particular financial instrument under specified conditions, often before maturity.