Home / Questions / Explain why trade credit is costless for the borrower when the funds are repaid before the...
Explain why trade credit is costless for the borrower when the funds are repaid before the end of the discount period.
Multiple choices are:
the price that is paid is the same from the time of purchase until the end of the discount period |
skipping the discount is just like paying interest on a loan |
paying after the discount period (skipping the discount) is like paying interest on a credit card balance |
paying before the end of the discount period is like paying your entire credit card bill and not incurring any interest or late fee |
A and B |
A and C |
A and D |
B and C |
B and D |
C and D |
all but A |
all but B |
all but C |
all but D |
all are true |
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