If management expects interest rates to rise and credit to tighten in the near future, it should consider [blank].
A)increasing its use of commercial paper and loans secured by current assets
B)decreasing the use of spontaneous financing
C)decreasing the level of permanent financing
D)increasing the level of permanent financing

Question

Quizplus · Accepted Answer

If management expects interest rates to rise and credit to tighten, it should consider increasing the level of permanent financing. This approach locks in current lower interest rates for a longer period, reducing the risk of higher costs and limited availability of funds in the future.

If Management Expects Interest Rates to Rise and Credit to Tighten