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

question 34

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) Commercial paper is less flexible than a line of credit, but the interest rate is lower.

---

Definitions:

Social Needs

Human needs that relate to interaction with others, including belonging, love, and affection, often positioned as essential for psychological well-being.

Motivation Theorists

Scholars and psychologists who study and explain the psychological processes that trigger, direct, and sustain human behavior towards attaining a goal.

Internal State

The condition or situation of an individual's inner self, typically referring to mental, emotional, or physiological status.

Equilibrium

A state of balance or stability, where different elements are in harmonious or stable proportions.