Question：Which of the following sources of funds for business is not commonly offered by commercial banks?
 
A. Long-term unsecured loans.
 
B. Medium-term loans.
 
C. Overdraft facilities.
 
D. Short-term loans.
 
The correct answer is: A
 
解析：Long-term loans are rarely negotiated with the commercial banks, unless in the form of a secured mortgage on property.
 
Overdraft facilities are funds that are drawn down as required, up to a pre-determined maximum limit agreed with the bank. They are repayable on demand and are the traditional form of bank finance.
 
Short-term loans with a fixed period of up to three years are another traditional form of bank finance. They carry less risk than the overdraft, but interest will be payable on the full amount, not just the amount in use at any one time.
 
Medium-term loans are for a period of three to ten years. This is a growing form of bank lending, which used to be restricted mainly to short-term financing.


 
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