A loan made by an institution to a business with an initial maturity of more than 1 year,generally 5 to 12 years,is known as a(n):

Question

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A loan made by an institution to a business with an initial maturity of more than 1 year, generally 5 to 12 years, is known as a term loan. Therefore, the correct choice is D. A Eurocurrency loan refers to a loan made in a currency other than the currency of the country where the institution making the loan is located (choice A). Treasury bills are short-term (less than 1 year) debt securities issued by the government (choice B). Syndicated loans are large loans made by a group of lenders (choice C). Stock purchase warrants are financial instruments that give the holder the right to purchase a company's stock at a specific price (choice E).

A Loan Made by an Institution to a Business with an Initial