Asked by
Nissona Hounshell
on Nov 06, 2024
Verified
Which of the following is an arrangement by which a bank agrees to lend a specified amount of money to an organization upon request?
A) A trade credit
B) A floating-rate bond
C) A junk bond
D) A lockbox
E) A line of credit
Floating-Rate Bond
A type of bond with a variable interest rate that adjusts periodically according to a specified benchmark rate.
Junk Bond
A high-risk, high-yield bond rated below investment grade, offering potential for high returns and high risk of default.
- Understand the mechanisms of trade credits and lines of credit as methods of financing.
Verified Answer
MB
Learning Objectives
- Understand the mechanisms of trade credits and lines of credit as methods of financing.
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