The three primary policy variables to consider when extending credit include all of the following except
A) credit standards.
B) the level of inflation.
C) the terms of trade.
D) collection policy.

Question

Quizplus · Accepted Answer

The level of inflation is not directly related to extending credit, although it may indirectly impact credit by affecting interest rates and the overall economy. The other three policy variables, credit standards, terms of trade, and collection policy, are all important factors to consider when extending credit.

The Three Primary Policy Variables to Consider When Extending Credit