Generally, More Use Is Made of Short-Term Financing Because

question 23

Multiple Choice

Generally, more use is made of short-term financing because

• A) short-term interest rates are generally lower than long-term interest rates.
• B) most firms do not have basic access to the capital markets.
• C) short-term financing is usually more predictable than long-term financing.
• D) short-term interest rates are generally lower than long-term interest rates and most firms do not have basic access to the capital markets.

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Definitions:

Contingent

Dependent on or conditioned by something else; possible but not certain to occur.

Truth Table

A mathematical table used in logic to determine whether combinations of propositions are true or false.

Conditional

A statement or proposition that expresses a cause-and-effect relationship between two events or conditions, often formulated as "if-then."