The most common means of ﬁnancing a temporary cash deﬁcit is a:
A)long-term secured bank loan.
B)short-term secured bank loan.
C)short-term issue of corporate bonds.
D)long-term unsecured bank loan.
E)short-term unsecured bank loan.

Question

Quizplus · Accepted Answer

The best choice for financing a temporary cash deficit is a short-term unsecured bank loan. This is because it is a quick and efficient way to obtain the necessary funds, without having to provide collateral or commit to a long-term repayment plan. The other options, such as long-term loans or corporate bonds, are more appropriate for larger and more permanent funding needs.

The Most Common Means of ﬁNancing a Temporary Cash Deﬁcit