In financial markets, period of maturity within one to five years of financial instruments is classified as_________________?

Correct answer: C. Intermediate term

  • A. Short-term
  • B. Long-term
  • C. Intermediate term
  • D. Capital term

Explanation

Financial instruments maturing in roughly one to five years are commonly classified as intermediate-term instruments. Short-term instruments mature sooner, while long-term instruments generally extend beyond this period.

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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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