Bank overdraft is a good source of finance for _________.

The correct answer is: A. Short term.

A bank overdraft is a short-term loan that allows you to spend more money than you have in your account. It is a good source of finance for unexpected expenses, such as a car repair or medical bill. Bank overdrafts are usually repaid within 30 days, but some banks may offer longer terms.

A bank overdraft is not a good source of finance for long-term expenses, such as a home renovation or a new car. This is because the interest rates on overdrafts are usually high. If you need to borrow money for a long-term expense, you should consider a different type of loan, such as a personal loan or a home equity loan.

Here is a brief explanation of each option:

• Option A: Short term. A bank overdraft is a short-term loan that allows you to spend more money than you have in your account. It is a good source of finance for unexpected expenses, such as a car repair or medical bill. Bank overdrafts are usually repaid within 30 days, but some banks may offer longer terms.
• Option B: Medium term. A medium-term loan is a loan that is repaid over a period of 1 to 5 years. It is a good source of finance for larger expenses, such as a new car or a home renovation. Medium-term loans are usually offered at lower interest rates than overdrafts.
• Option C: Long term. A long-term loan is a loan that is repaid over a period of 5 years or more. It is a good source of finance for very large expenses, such as a new home or a business investment. Long-term loans are usually offered at lower interest rates than overdrafts and medium-term loans.
• Option D: Short and long term. A bank overdraft is not a good source of finance for long-term expenses, such as a home renovation or a new car. This is because the interest rates on overdrafts are usually high. If you need to borrow money for a long-term expense, you should consider a different type of loan, such as a personal loan or a home equity loan.