An automobile loan is likely to be a(an)
A)short-term debt instrument.
B)intermediate-term debt instrument.
C)long-term debt instrument.
D)equity.

Question

Quizplus · Accepted Answer

An automobile loan is typically repaid over a period of several years, usually ranging from 3-5 years. This makes it an intermediate-term debt instrument. It is not a short-term debt instrument as it is not usually repaid within a year, and it is not equity as ownership of the vehicle remains with the lender until the loan is paid off.

An Automobile Loan Is Likely to Be A(an)