If a Firm Has Set Up a Revolving Credit Agreement

question 12

True/False

If a firm has set up a revolving credit agreement with a bank, the risk to the firm of being unable to obtain funds when needed is lower than if it had an informal line of credit.

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Definitions:

Conditioned Response

is a learned reaction to a previously neutral stimulus that has become associated with an unconditioned stimulus through conditioning.

Pavlov

A Russian physiologist best known for his work in classical conditioning, particularly the concept of the conditioned reflex using dogs.

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally triggers a reflexive or unlearned response.

Pavlov's Experiment

A set of psychological experiments conducted by Ivan Pavlov illustrating that dogs could be conditioned to salivate upon hearing a bell if the sound was repeatedly paired with the presentation of food.