Which one of the following situations will cause cash flow to creditors to be negative?
A) When there are no new loans and the interest paid exceeds the principal repaid on a loan
B) When the amount of a new loan exceeds both the interest and principal payments made
C) When the amount of the loan paid off exceeds both the amount of a new loan plus the interest paid
D) When the rate of interest on all outstanding loans is decreased
E) When there are no new loans and the current loan is paid off in full
Correct Answer:
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