The stated cost of a pledge of accounts receivable is normally ________ above the prime rate.
A) 6 to 8 percent
B) 2 to 5 percent
C) 4 to 9 percent
D) 6 to 10 percent

Question

Quizplus · Accepted Answer

The stated cost of a pledge of accounts receivable is normally 2 to 5 percent above the prime rate. This reflects the additional risk and administrative costs associated with using accounts receivable as collateral for a loan.

The Stated Cost of a Pledge of Accounts Receivable Is