Question

The funds required for a period of more than one year but less than five years is called ____________.

• A. long-term finance
• B. medium-term finance
• C. short-term finance
• D. none of the above

Answer 1

Answer: (B)

medium-term finance

The classification of sources of funds on the basis of period are related to the duration of time. The medium-term sources of funds are the ones that provide financing for a time period of more than a year and not exceeding five years of time.