Which of These Actions Is Indicative of a Restrictive Short-Term

question 19

Multiple Choice

Which of these actions is indicative of a restrictive short-term financial policy?

• A)Granting increasing amounts of credit to customers
• B)Expanding the number of inventory items carried
• C)Increasing the firm's investment in the current accounts
• D)Minimizing the cash balances held by the firm
• E)Investing relatively large amounts in marketable securities

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Overgeneralization

A logical fallacy involving making broad generalizations from too little evidence or specific cases.

Bloodletting

An historical medical treatment involving the withdrawal of blood from a patient to cure or prevent illnesses, now mostly obsolete due to its ineffectiveness and risk.

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A historical period in Europe lasting from the 5th to the late 15th century, characterized by feudalism, castles, and knights.

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