A Firm Will Borrow Long-Term

question 56

Multiple Choice

A firm will borrow long-term

• A) if the extra interest cost of borrowing long-term is less than the expected cost of rising interest rates before it retires its debt.
• B) if the extra interest cost of borrowing short-term due to rising interest rates does not exceed the expected premium that is paid for borrowing long-term.
• C) if short-term interest rates are expected to decline during the term of the debt.
• D) if long-term interest rates are expected to decline during the term of the debt.

---

Definitions:

Academic Achievement

The extent of a student's success in formal education, often measured by grades, scores, or the attainment of specific knowledge or skills.

Counselors

Professionals trained to provide guidance and support in personal, social, educational, or psychological matters.

Media Violence

This encompasses representations of violent acts and aggression in various forms of media, which studies have shown can influence aggressive behavior in some individuals.

Aggressive Behavior

Actions that are intended to cause harm or pain to another person, or to destroy property.