In financial markets, period of maturity less than one year of financial instruments is classified as________________?
Correct answer: A. Short-term
- A. Short-term
- B. Long-term
- C. Intermediate term
Explanation
Financial instruments maturing in less than one year are classified as short-term instruments. Longer maturities are grouped as intermediate-term or long-term.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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