1. Firms exposed to the risk of interest rate changes may reduce that risk by
A. obtaining a Eurodollar loan.
B. hedging in the commodities market.
C. pledging or factoring accounts receivable.
D. hedging in the financial futures market.
2. Trade credit may be used to finance a major part of the firms working capital when
A. the firm extends less liberal credit terms than the supplier.
B. the firm and the supplier both extend the same credit terms.
C. neither the firm nor the supplier extends credit.
D. the firm extends more liberal credit terms than the supplier.