Which of the Following Sources of Short-Term Financing Is Likely

question 150

Multiple Choice

Which of the following sources of short-term financing is likely to have the lowest interest rate?

• A) accounts receivable loan (pledging of accounts receivable)
• B) line of credit
• C) line of credit with a compensating balance
• D) commercial paper

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Definitions:

Placebo

A safe tablet, medication, or operation given primarily for its mental comfort to the patient, rather than any physical impact.

Control Group

In experimental research, a group of subjects that does not receive the experimental treatment and is used as a baseline to compare the effects of the treatment.

Diabetes

A chronic condition characterized by high levels of sugar in the blood, due to the body's inability to produce or effectively use insulin.

Experimental Group

In research, the group that receives the variable being tested, contrasted with the control group.