Answered

Explore Westonci.ca, the premier Q&A site that helps you find precise answers to your questions, no matter the topic. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform.

Secured short-term loans are usually secured by:

A. accounts payable and accounts receivable
B. buildings and equipment
C. equipment and inventory
D. inventory and raw material
E. accounts receivable and inventory

Sagot :

GinnyAnswer

Final answer:

Secured short-term loans are backed by accounts receivable and inventory, offering lower interest rates due to collateral and highlighting the importance of asset liquidity in banking.


Explanation:

Secured short-term loans are typically secured by accounts receivable and inventory. This means that in case the borrower defaults on the loan, the lender can claim these assets to recover some of the lost loan value.

Secured loans involve having an asset pledged as collateral to minimize the lender's risk. Unlike unsecured loans, secured loans offer lower interest rates due to the collateral involved, providing an advantage to both the borrower and the lender.

Liquidity plays a crucial role in banking, with assets organized based on how easily they can be converted to cash. The most liquid assets, like cash and short-term loans, appear at the top of the balance sheet, highlighting their importance in maintaining a bank's financial stability.


Learn more about Secured short-term loans here:

https://brainly.com/question/34338114


We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Your questions are important to us at Westonci.ca. Visit again for expert answers and reliable information.