JAMB Commerce 1995 Question 13

Question 13

Business Finance

A public limited company can raise long-term loans through

  1. A.the capital market
  2. B.the money market
  3. C.bank overdrafts
  4. D.discount houses.
Show the answer and explanation

Answer: A (the capital market)

Explanation

The capital market deals in long-term funds such as shares and debentures; the money market and overdrafts provide short-term funds.