TC304Quiz 03: Farm Management 318 Student ID #:Period: %??& CCFCB(BArialQuiz 3DnC DC  DxCDCxBBBA&@A#.BBCA&@A4Commercial farms are using credit _____ in the past.CBCA&@AA. more often thanC"CCA&@AB. the same as CXCCA&@AC. less often than\BACA&\BBCxBA>Commercial farms are using credit more often than in the past. BxBCA&%?@?@xBBBA&@A#.BBCA&@A5To use credit wisely, the farmer must consider _____.CBCA&@A A. repaymentC"CCA&@A B. returnsCXCCA&@AC. riskCCCA&@AD. All of the above\BBCBAAll of the above. %?A@@AxBBBA&@A#.BBCtB&@A}The ability to withstand unexpected low income and unexpected expenses and still remain in business is _____ bearing ability.CBCA&@A A. repaymentC"CCA&@A B. returnsCXCCA&@AC. riskCCCA&@AD. All of the above\BBCBA|The ability to withstand unexpected low income and unexpected expenses and still remain in business is risk bearing ability. %?@@@xBBBA&@A#.BBC(B&@AMTrue or False? Credit should be obtained from as many lenders as possible. CBCA&@AA. TrueC"CCA&@A B. FalseCBC?C fm5q304.bmpGCB@BA\BBCBAThis statement is False. BAAA%?@@@&xBBBA&@A#.BBC(B&@ABWhich of the following is usually the highest investment priority?CBCA&@A A. buildingsC"CCA&@AB. landCXCCA&@AC. seedCCCA&@AD. All of the aboveCBHCHC fm5q305.bmpBACA&\BBCxBADThe answer can be found on page 216 of The Farm Management Handbook. BCCA&%?@@@xBBBA&@A#.BBC(B&@AAWhich of the following is usually the lowest investment priority?CBCA&@A A. buildingsC"CCA&@AB. landCXCCA&@AC. seedCCCA&@AD. All of the aboveCBHCHC fm5q306.bmpGCB@BA\BBCxBAFThe answer can be found on page 216 of The Farm Management Handbook. BAAA%?@@@&xBBBA&@A#.BBCA&@A9Land purchases should be financed with _____ liabilities.CBCA&@A A. currentC"CCA&@AB. intermediateCXCCA&@A C. long-termCCCA&@AD. All of the aboveBACA&\BBCxBA=Land purchases should be financed with long-term liabilities. BCCA&%?A@AxBBBA&@A#.BBCtB&@AuThe _____ rate is the lowest interest rate charged by commercial banks for short-term loans to lowest-risk borrowers.CBCA&@A A. bargainC"CCA&@A B. marketCXCCA&@A C. non-riskCCCA&@A D. primeCBCC fm5pr04.bmpGCB@BA\BBCBAuThe prime rate is the lowest interest rate charged by commercial banks for short-term loans to lowest-risk borrowers. BAAA%?A@A&xBBBA&@A#.BBC(B&@AeTrue or False? Dealers and merchants will often extend short-term credit to their farming customers.CBCA&@AA. TrueC"CCA&@A B. FalseC CCAC fm5q309.bmpBACA&\BBCBAThis statement is True. BCCA&%? A@ AxBBBA&@A#.BBC(B&@AIMost all loans are supported by some type of written record called _____.CBCA&@AA. credit historiesC"CCA&@AB. credit instrumentsCXCCA&@AC. flexible financingCCCA&@A D. mortgagesCBCgC fm5q310.bmpGCB@BA\BBCxBAVMost all loans are supported by some type of written record called flexible financing. BAAA8-18-28-38-48-58-68-7