Friday, October 10, 2014

Which of the following is an example of an intermediate-term debt?

1) Which of the following is an example of an intermediate-term debt?

A) A thirty-year mortgage.

B) A sixty-month car loan.

C) A six month loan from a finance company.

D) A Treasury bond.

2) If the maturity of a debt instrument is less than one year, the debt is called ________.

A) short-term

B) intermediate-term

C) long-term

D) prima-term

3) Long-term debt has a maturity that is ________.

A) between one and ten years.

B) less than a year.

C) between five and ten years.

D) ten years or longer.

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