1. Short-term financing is normally cheaper than long-term financing because it:
a. is less risky for the borrower
b. has interest costs which are certain
c. has higher transaction costs
d. usually has lower interest rates than long-term financing
2. For short-term funding (less than a year), firms usually use all but which of the following?
a. bonds
b. trade credit
c. commercial paper
d. revolving line of credit