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.

Question

Quizplus · Accepted Answer

When the maturity of a debt instrument is less than one year, it is classified as a short-term debt. This means that the debt is due to be repaid within the next year. Intermediate-term debts have maturities that range from one to ten years, while long-term debts have maturities that exceed ten years. Prima-term is not a commonly used term in finance.

If the Maturity of a Debt Instrument Is Less Than