Define costly trade credit

Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter20: The Global Economy
Section: Chapter Questions
Problem 18AA
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Define costly trade credit

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A trade credit is an agreement between businesses where purchase of goods can be transacted on credit without paying cash immediately. The cash settlement is made at some later decided date.

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