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Short-term bank loans to business firms are generally. Select one: O a. Quicker and cheaper than other sources of debt O b. Available in lower dollar volumes than other sources of debt O c. Offer greater flexibility of terms and conditions than other sources of debt O d. May require compensating balances O e. All of the above

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Answer #1

Correct option:

e) All of the above

Explaination:

a) Short term loans are low risk and hence are easily available

b) Can be borrowed for less amounts as small business usually use it. Larger firms use revolving credit.

c)Are flexible and can be tweaked to own criterion

d)May require compensating balance as a security

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