Which of the Following Is an Advantage of Trade Credit

question 93

Multiple Choice

Which of the following is an advantage of trade credit?

• A) Trade credit is conveniently obtained as a normal part of the firm's operations.
• B) No formal agreements are generally involved in extending credit.
• C) The amount of credit extended expands and contracts with the needs of the firm.
• D) All of the above.

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Definitions:

M1

A category of the money supply that includes all physical currency and coin, demand deposits, traveler's checks, and other checkable deposits.

Open-Market Purchase

The buying of securities and other financial assets by a central bank from the market to increase the money supply and lower interest rates.

Money Supply

The entirety of monetary resources available in an economy at a specific time, including cash, coins, and balances in checking and savings accounts.

Government Bonds

Long-term debt securities issued by the government to finance its expenditures, offering periodic interest payments to investors.