Borrowing to finance inventories has traditionally been through short-term bank loans or commercial paper with a maturity date of from 1-6 months because
A) any firm that has to borrow to finance inventories is not a good long-term risk.
B) a firm should only expand on the upswing.
C) inventories, hopefully, will not be held long.
D) equity financing is more expensive.
Correct Answer:
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Q15: If interest rates fall and the return
Q16: Declines in wealth cause which of the
Q17: The accumulation of capital depends on
A)capacity utilization.
B)the
Q18: Investment spending by nonfinancial businesses depends on
Q19: Generally speaking, the higher the interest rate
Q21: A major reason for using short-term debt
Q22: Gross investment minus net investment is which
Q23: Which of the following is false?
A)Financing may
Q24: Which form of financing is desired because
Q25: The public debt is best defined as
A)the
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