Which of the following is an example of medium-term financing?

Medium-term financing typically involves borrowing or investing for a period that spans from one to five years. This form of financing is often utilized to support assets or investments that will provide a return over a similar timeframe.

Purchasing machinery aligns with the concept of medium-term financing because businesses often acquire machinery to increase production capacity or improve efficiency, which is essential for generating revenue over the medium term. This type of asset generally has a useful life that matches the financing period, making it a suitable candidate for medium-term financing.

In contrast, covering monthly operational expenses is a short-term activity, usually managed through current assets or short-term financing. Funding long-term research projects and investing in real estate are typically associated with longer investment horizons, thus classifying them as long-term financing. Therefore, purchasing machinery stands out as an appropriate embodiment of medium-term financing in this context.