Which of the following sources of short-term financing is likely to have the highest interest rate? A) Accounts receivable loan (pledging of accounts receivable) B) Line of credit Q41 C) Line of credit with a compensating balance D) Commercial paper In general, interest rates on short-term debt are higher than interest rates on long-term debt because the borrower has less time to repay the loans, and hence the risk to the lender is higher. A) True B) False Q42 In the Jones Electronics Case, working capital had no impact on the outcome. A) True 043 B) False inn nt rredit with HNC Bank that allows the company to borrow up to