Question

What is the maturity period of loans obtained from the capital market?

• A. Short term
• B. Long term
• C. Both (A) and (B)
• D. None of these

Hint:

Capital market loans usually have a longer maturity period, making them suitable for long-term investments and projects.

Answer 1

The Correct Option is B

Step 1: Loans from Capital Market.
Loans obtained from the capital market typically have a long-term maturity period. These loans are raised by issuing bonds or other long-term instruments, and they usually have a maturity of more than one year.
Step 2: Analysis of options.
- (A) Short term: Loans from the capital market are generally long-term, not short-term.
- (B) Long term: The correct answer, as capital market loans usually have long-term maturity periods.
- (C) Both (A) and (B): This option is incorrect because capital market loans are not typically short-term.
- (D) None of these: This option is incorrect since the correct answer is long term.
Step 3: Conclusion.
The maturity period of loans obtained from the capital market is typically long term, so the correct answer is (B) Long term.