[amp_mcq option1=”short-term” option2=”long-term” option3=”intermediate term” option4=”capital term” correct=”option3″]<\/p>\n
The correct answer is C. intermediate term.<\/p>\n
In financial markets, the term of a financial instrument is the length of time between the issue of the instrument and its maturity. Instruments with maturities of less than one year are considered short-term, instruments with maturities of one to five years are considered intermediate-term, and instruments with maturities of more than five years are considered long-term.<\/p>\n
Intermediate-term debt instruments are typically issued by governments, corporations, and financial institutions. They are used to finance a variety of activities, such as capital expenditures, working capital needs, and mergers and acquisitions. Intermediate-term debt instruments are typically considered to be less risky than long-term debt instruments, but more risky than short-term debt instruments. This is because intermediate-term debt instruments are exposed to interest rate risk for a longer period of time than short-term debt instruments, but for a shorter period of time than long-term debt instruments.<\/p>\n
Here is a brief explanation of each option:<\/p>\n
[amp_mcq option1=”short-term” option2=”long-term” option3=”intermediate term” option4=”capital term” correct=”option3″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"class_list":["post-43225","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"yoast_head":"\n