Which of the following is not a means for a bank to secure short-term loans made to a firm?
A)Clean-up requirements
B)Compensating balance
C)Having a specific asset pledged as collateral for the loan
D)Stretching payables

Question

Quizplus · Accepted Answer

Stretching payables refers to delaying payments to suppliers, which is not a means for a bank to secure short-term loans made to a firm. Clean-up requirements, compensating balances, and pledging specific assets as collateral are all methods that a bank can use to secure short-term loans.

Which of the Following Is Not a Means for a Bank