- 1 Marks
Question
A fixed sum of money set aside by an organization at regular intervals to achieve a specific sum at some future point in time is called:
A. Savings
B. Sinking fund
C. Investment
D. Strategic management
E. Loan notes
Answer
B. Sinking fund
Explanation:
The correct answer is B because a sinking fund is a reserve established to accumulate funds over time for a specific financial purpose, such as paying off a debt or replacing an asset.
- Tags: Financial management, Investment, Sinking Fund
- Level: Level 1
- Topic: Basics of Business Finance and Financial Markets
- Series: NOV 2022
- Uploader: Theophilus