Multiple Choice QuestionOne way a company can encourage customers to pay their credit card balance quickly is to Blank______.Multiple choice question.offer a lower interest rateeliminate credit checksoffer an early-payment discountadd on a early-payment fee to the total bill

Multiple Choice QuestionEarly payment discounts offered to credit customers increase cash flow for the firm and ______.Multiple choice question.reduce the firm's profitabilityincrease the firm's profitabilitynegatively affect the firm's credit ratingreduce on-time payments

Multiple Choice QuestionThe interest rate commercial banks charge their best customers, usually large corporations, for short-term loans is the _____ rate.Multiple choice question.primeprincipalcouponpremium

Multiple Choice QuestionWhen the Federal Reserve wants to encourage economic activity, it will ______ the discount rate.Multiple choice question.eliminatedecreaseextendincrease

Multiple Choice QuestionAn agreement by which a financial institution promises to lend a business a predetermined sum on demand is called ______.Multiple choice question.a line of credita trade creditcollateralequity financing

Multiple Choice QuestionThe Fed's authority to establish and enforce credit rules for financial institutions and private investors is done through ______.Multiple choice question.changing the reserve requirementopen market operationschanging the discount ratecredit controls