Prior to the 1970s,bankers Were Happy with Interest-Rate Ceilings Because

question 54

Multiple Choice

Prior to the 1970s,bankers were happy with interest-rate ceilings because those ceilings

• A)eliminated interest-rate competition among banks
• B)guaranteed them high profits
• C)guaranteed them a minimum profit
• D)enabled them to expand into other lines of commerce
• E)allowed them to hold corporate stock

Understand the impact of credit policies on the cash cycle and operating cycle of a business.

Comprehend the terms of sale and the effects of credit policy decisions on a firm’s financials, including net present value calculations.

Understand sophisticated credit evaluation techniques like Multiple Discriminant Analysis (MDA) and their application.

Familiarize with the definitions and applications of just-in-time inventory (JIT) and spread in financial management.

---

Definitions:

Legislative Branch

The branch of government responsible for creating and passing laws, in the United States, it is composed of the House of Representatives and the Senate.

Concurrent Powers

Powers in federal systems of government that are shared by both the state and federal governments.

Unicameral Legislature

A type of legislative body with a single chamber, in which all legislators convene to debate and vote on legislation.

Constitutional Lawmaking

The process of drafting, adopting, and amending laws and principles that govern a state or country, typically outlined in a constitution.