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The primary disadvantage of relying on short-term credit for continuous financing needs is: a. the risk of increasing interest rates b. the higher interest rates

The primary disadvantage of relying on short-term credit for continuous financing needs is:

a. the risk of increasing interest rates

b. the higher interest rates relative to long-term rates

c. the time it takes to arrange for it as compared to long-term financing

d. banks dont like to lend short-term

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