Which Statement Is Correct

question 50

Multiple Choice

Which statement is correct?

• A)A transfer without recourse means that the purchaser can go back to the company for compensation of bad debts.
• B)A transfer without recourse means that the purchaser of the receivables takes the collection risk.
• C)A transfer without recourse means that the seller of the receivables takes the collection risk.
• D)A transfer with recourse means that the purchaser of the receivables takes the collection risk.

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Definitions:

Equilibrium

A scenario where market demand equals supply, resulting in the stabilization of prices.

Large-Scale Unemployment

A situation where a significant portion of the workforce is without jobs, often due to economic downturns or structural economic changes.

Deep Recession

A particularly severe and prolonged period of economic decline, characterized by significant falls in income and employment.

Aggregate Demand

Aggregate demand represents the total demand for goods and services within an economy at a given overall price level and in a given time period.