Which type of lease requires periodic payments for the use of an asset for a specified period?

An operating lease is a type of lease that requires periodic payments for the use of an asset over a specified period. It typically involves leasing equipment or property for a shorter duration than the useful life of the asset, meaning the lessee does not take ownership of the asset at the end of the lease term. Payments made under an operating lease are considered rental expenses, which can often be deducted for tax purposes.

In contrast, a capital lease (also called a finance lease in some contexts) generally covers the full economic life of the asset, transferring significant risks and rewards of ownership to the lessee. This type of lease usually results in the asset being recorded on the balance sheet of the lessee. A finance lease operates similarly to a capital lease and also implies ownership aspects, which differs from an operating lease's temporary use arrangement.

A trade lease, while it involves leasing, typically refers to leasing agreements between businesses for trading or exchanging assets rather than simply renting. Thus, the specific characteristics of an operating lease make it distinct as the correct answer in this context, as it emphasizes periodic payments for use rather than ownership or significant investment in the asset itself.