Multiple Choice
Borrowers (e.g., business firms) feel that there is more risk associated with short-term debt (as compared with long-term debt) because of the
I. uncertainty arising from interest rate fluctuations
II. risk of being unable to refund the debt
III. relatively high cost of short-term debt
A) I and II
B) I and III
C) II and III
D) I, II, and III
Correct Answer:
Verified
Correct Answer:
Verified
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