Which of the Following Comparisons Between Short-Term Bank Loans Is

question 41

Multiple Choice

Which of the following comparisons between short-term bank loans is correct?

• A)Commercial paper interest rates are usually slightly higher than rates on bank loans.
• B)Commercial paper is only appropriate for firms requiring a limited amount of short-term financing,while banks can offer substantially larger amounts of funds.
• C)Banks demand that borrowers meet exacting credit-worthiness tests,while the lenders that purchase commercial paper are less strict.Only the most credit-worthy borrowers have access to bank loans.
• D)None of the above.

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Definitions:

Right Hemisphere

The right half of the brain, which is associated with creative thought, spatial ability, and the processing of visual and musical information.

Left Hemisphere

The left side of the human brain, often associated with analytical thought, logic, language, and processing of serial sequences.

Suprachiasmatic Nucleus

A part of the brain located in the hypothalamus, responsible for controlling circadian rhythms.

Circadian Rhythm

The biological clock that regulates sleep-wake cycles and other physiological processes in a roughly 24-hour cycle.