TRUE OR FALSE

1. Although the LIBOR has remained competitive and comparable to the U.S. Prime Rate, it has remained slightly higher than the Prime Rate for over a decade.

2. Bank deregulation has eased competition between commercial banks, savings and loans, brokerage houses, and new financial services companies

3. As the accounts receivable turnover ratio increases, the average collection period will also increase.

4. Short term lenders are primarily interested in profitability ratios

5. Trade credit is usually extended for periods of one year or more.