The loans for cars and home appliances is classified as loans for ___________?
Correct answer: A. durable goods
- A. durable goods
- B. non-durable goods
- C. equilibrium goods
- D. non-equilibrium goods
Explanation
Cars and major home appliances provide services over several years and are not consumed in one use, so they are classified as durable goods. Loans used to purchase them are therefore durable-goods loans.
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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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