34 ) What is generally the largest source of short-term credit for small firms?

A) Bank loans

B) Commercial paper

C) Installment loans

D) Trade credit

35 ) From the banker's point of view, short-term bank credit is an excellent way of financing

A) fixed assets.

B) permanent working capital needs.

C) repayment of long-term debt.

D) seasonal bulges in inventory and receivables.

36 ) Commercial paper is very popular with many firms because

A) it can usually be issued below the prime rate.

B) it satisfies the firm's need for long-term funds.

C) there are no required lines of credit at the bank.

D) it is very simple to roll over (refinance) in times of economic turmoil.

37 ) The Truth in Lending law is primarily designed to protect

A) corporate borrowers.

B) banks.

C) consumers.

D) investors in municipal bonds.