Which One of the Following Statements Is Correct

question 68

Multiple Choice

Which one of the following statements is correct?

• A)Seasonal needs are financed externally when firms adhere to a flexible financing policy.
• B)A flexible financing policy tends to increase the risk of encountering financial distress.
• C)Long-term interest rates tend to be less volatile than short-term rates.
• D)Most firms tend to finance inventory with long-term debt.
• E)Short-term interest rates are generally higher than long-term rates.

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Definitions:

American Foreign Policy

The strategies adopted by the United States government to guide its interactions with other countries, including diplomacy, military actions, and economic sanctions.

Key Players

Individuals, organizations, or entities that have a significant influence, role, or stake in a particular context, situation, or industry.

Islamic State

A militant group that aims to establish a caliphate based on their interpretation of Islamic law, known for controlling territories in Iraq and Syria.

Iraq

A country in the Middle East, known for its ancient civilization and diverse cultural heritage.