Business Borrowing Becomes More Difficult When ______

question 215

Multiple Choice

Business borrowing becomes more difficult when ______.

• A) the federal government increases spending
• B) the federal government decreases spending
• C) the Bank of Canada increases the money supply
• D) the Bank of Canada decreases the money supply

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Definitions:

Gross Profit Percentage

A financial metric that represents the gross profit as a percentage of net sales, indicating the efficiency of a company's production process.

Current Ratio

A financial metric that measures a company's ability to pay off its short-term liabilities with its short-term assets.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the business's normal operating cycle if longer than a year.

Short-term Note

A financial instrument typically due for repayment within one year, often used for short-term financing needs.