Multiple Choice
The interest rate charged on secured short-term loans to a corporation is generally higher than that charged on unsecured short-term loans because
A) secured loans are less risky than unsecured loans.
B) the risk of default is lower on secured loans.
C) it is costly to negotiate and administer secured loans.
D) lenders of secured loans must pay more for their funds.
Correct Answer:
Verified
Correct Answer:
Verified
Q46: The major type of loan made by
Q80: If one borrows $1,000 at 8 percent
Q81: The interest rate charged on a secured
Q83: Factoring accounts receivable is a relatively inexpensive
Q86: Tangshan Mining borrowed $100,000 for one year
Q87: If a firm gives up the cash
Q88: If possible, it would be a more
Q97: Collateral is typically required for a _.<br>A)
Q155: Revolving credit agreements are guaranteed loans that
Q161: The outright sale of accounts receivable at