In financial markets, period of maturity more than five years of financial instruments is classified as___________________?
Correct answer: D. Long-term
- A. Intermediate term
- B. Capital term
- C. Short-term
- D. Long-term
Explanation
Financial instruments with maturities exceeding five years are generally classified as long-term instruments. Short-term instruments mature within a year, while intermediate-term instruments fall between short- and long-term periods.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Business Finance
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.
Practise Business Finance
975 free Business Finance MCQs from Management Sciences, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Management Sciences questions like this
Management Sciences is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Business Finance questions
Type of financial securities that mature in less than a year are classified as___________?
Type of financial security in which loans are secured by borrowers' property is classified as__________?
Markets dealing with residential loans, industry real estate loans, agricultural loans and commercial loans are called___________?
Rate of return which is asked by investors is classified as_____________________?
Corporations that buy financial instruments with money accepted from savers are classified as_________________?
Markets which bring closer institutions needing funds and with surplus funds are classified as______________?