Money lends to corporations by banks is classified as___________?
Correct answer: B. Commercial loans
- A. Eurodollar market deposits
- B. Commercial loans
- C. Consumer credit loans
- D. Consumer credit loans
Explanation
Loans that banks provide to businesses and corporations for operations, expansion, or other commercial purposes are called commercial loans. Consumer credit is intended for individuals rather than corporations.
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About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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