How Is Credit Approval Generally Handled for Well-Established Customers with a Documented

question 40

Multiple Choice

How is credit approval generally handled for well-established customers with a documented payment history?

• A)specific authorization by the credit manager
• B)routine approval is usually granted
• C)a new credit application is taken
• D)a formal credit check is made for each sale

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Definitions:

IGM Poll

A survey conducted by the Initiative on Global Markets (IGM) that gathers opinions from economists on various economic policy issues.

Crowding Out Effects

Refers to a situation where increased government spending leads to a reduction in private sector investment due to rising interest rates.

ARRA

The American Recovery and Reinvestment Act of 2009, a legislative package aimed at stimulating the U.S. economy during the financial crisis through investment in infrastructure, education, health, and renewable energy.

Policy

A deliberate system of principles to guide decisions and achieve rational outcomes, often enacted by a governmental or corporate entity.