Multiple choice

1) Variables important to credit scoring models include 

A.-negative public records.

B.-age of company in years.

C.-facility ownership.

D.-all of these variables apply.

2) What is generally the largest source of short-term credit small firms? 

A.-Commercial paper

B.-Bank loans

C.-Installment loans

D.-Trade credit

3) Commercial paper that is sold without going through a broker or dealer is known as 

A.-dealer paper.

B.-term paper.

C.-book-entry transactions.

D.-direct paper.

4) Which of the following is not a true statement about commercial paper? 

A.-Finance paper is also referred to as direct paper.

B.-Industrial companies, utility firms or finance companies too small to sell direct paper sell dealer paper.

C.-Dealer paper is sold directly to the lender by a finance company.

D.-Finance paper is sold directly to the lender by the finance company.