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    Foundations of Financial Management Study Set 4
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    Exam 8: Sources of Short-Term Financing
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    In Determining the Cost of Bank Financing, Which Is the Most
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In Determining the Cost of Bank Financing, Which Is the Most

Question 107

Question 107

Multiple Choice

In determining the cost of bank financing, which is the most important factor?


A) The prime rate
B) The nominal rate
C) The effective rate
D) The discount rate

Correct Answer:

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