Question

On the basis of period, the different sources of funds are ______.

• A. Medium-term sources
• B. Long-term source
• C. Short-term sources.
• D. All of the above

Answer 1

Answer: (D)

All of the above

Sources of funds can be classified into three categories on the basis of the duration of the financing available. They are :

Long-term sources: These are for a long period of time, exceeding 5 years.

Medium- term sources : These are for a medium period of time, i.e more than a year and less than 5 years.

Short- term sources: These are for a short period of time, i.e not exceeding one year.