Which of the Following Is Not a Source of Debt

question 23

Multiple Choice

Which of the following is not a source of debt funding for a start-up firm?

• A) accounts payable
• B) vendor financing
• C) factoring
• D) trade notes
• E) leasing

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Definitions:

Interest Rate Differential

The difference in interest rates between two distinct economic regions or between different types of financial instruments.

Unbiased Forward Rates

Forward exchange rates that are equal to the future spot rates, as predicted by economic theory, free from any speculation or bias.

Spot Exchange Rate

The current market price for exchanging one currency for another for immediate delivery.

Forward Exchange Rate

An agreed exchange rate for a currency to be exchanged at a future date, used in hedging and trading strategies.