Question

What is the term of short term credit?
(a) Less than 15 months
(b) Less than 2 years
(c) Less than 5 years
(d) Less than 10 years

Answer 1

Answer:

b) less than 15 months

is the answer

Answer 2

Answer:

(b) Less than 2 years

Explanation:

The term of short term credit is less than 2 years.

A short-term loan is a form of loan obtained to support a need for temporary personal or corporate assets. Because it is a form of credit, it requires a borrowed amount of capital and interest which has to be repaid or reimbursed on a given due date, usually within one year of receiving the loan.

Short term loans are called as short because of how rapidly the loan has to be paid off. It has to be paid off in most cases within six months to a year and a half. Any loan for a longer term than that is called medium or long term loan.