The Price of Gasoline Decreased Dramatically in the Summer of 2009

question 152

Multiple Choice

The price of gasoline decreased dramatically in the summer of 2009. One likely reason for this change is:

• A) a shortage in the supply of oil worldwide.
• B) riots in the Middle East that disrupted oil shipments.
• C) a decrease in the demand for gasoline brought on by the recession.
• D) strong economic growth in China that increased the demand for automobiles.

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Definitions:

Long-term Loan Agreements

Long-term Loan Agreements refer to borrowing arrangements designed to be repaid over an extended period, typically exceeding one year, used mainly for financing significant projects or acquiring assets.

Covenants

Conditions imposed in agreements, especially in loan contracts, that set forth certain actions to be performed or avoided by the borrower.

Short-term Credit Agreements

Agreements between a borrower and a lender for loans that are typically due within one year or less.

Discount Loans

Loans on which the interest and financing charges are deducted from the amount before the borrower receives it.