Which of the Following Refers to Postponing Due Dates for Interest

question 55

Multiple Choice

Which of the following refers to postponing due dates for interest and principal on loans and payments on credit purchases?

• A) debt payment extensions
• B) asset restructuring
• C) financial restructuring
• D) debt composition change

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Definitions:

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value.

Bank Certificates

Short for "bank certificates of deposit (CDs)," which are time-deposit financial products offered by banks with fixed interest rates and maturity dates.

Money Market Funds

Investment funds that invest in short-term debt securities, offering high liquidity with a relatively low level of risk.

Restricted Cash

Cash that is not available for immediate use because it is reserved for a specific purpose.