The Most Common Way to Finance a Temporary Cash Deficit

question 30

Multiple Choice

The most common way to finance a temporary cash deficit is the use of:

• A) banker's acceptances.
• B) call options.
• C) commercial paper.
• D) unsecured bank loans.

---

Definitions:

Solvent

The state of being able to meet all financial obligations as they come due.

Surety

A form of security or guarantee where a third party agrees to be responsible for the debt, default, or failure of another to fulfill an obligation.

Subject To

Conditional upon or dependent on something else; can indicate subjection to legal restrictions or conditions.

Personally Liable

Refers to the responsibility of an individual to cover debts or legal judgments out of their own assets.