All of the Following Are Major Forms of Bank Financing

question 35

Multiple Choice

All of the following are major forms of bank financing EXCEPT

• A)overdrafts
• B)factoring
• C)discounting
• D)term loans

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Definitions:

Annuity Due

A type of annuity payment where payments are made at the beginning of each period, instead of at the end, which is common in standard annuities.

Ordinary Annuity

A series of equal payments made at equal intervals over a period of time, with the first payment occurring at the end of the period.

Present Value

The existing value of a future sum or cash flow sequence, assessed with a certain rate of return.

Compounded Annually

An interest calculation method where interest is added to the principal sum at the end of each year, affecting future interest calculations.