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Basic Question 0 of 7
There is a saying in banking: when a business is experiencing financial problems, trade creditors are the first to know. Why would this be true?
B. Trade creditors perform credit checks less often than banks do.
C. Trade creditors get all of their information about credit risks from banks.
D. Trade creditors can always take back the merchandise they sold the borrower if they don't get paid.
E. Trade creditors extend credit only to the most creditworthy businesses while banks extend short-term loans to almost any borrower.
A. Trade creditors typically extend businesses credit more often and for a shorter maturity than do other creditors (such as banks).
B. Trade creditors perform credit checks less often than banks do.
C. Trade creditors get all of their information about credit risks from banks.
D. Trade creditors can always take back the merchandise they sold the borrower if they don't get paid.
E. Trade creditors extend credit only to the most creditworthy businesses while banks extend short-term loans to almost any borrower.
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I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu
Learning Outcome Statements
calculate and interpret measures of fit and formulate and evaluate tests off it and of regression coefficients in a simple linear regression
CFA® 2025 Level I Curriculum, Volume 1, Module 10.