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Question
Firms generally choose to finance temporary assets with short-term debt because
a. Matching the maturities of assets and liabilities reduces risk.
b. Short-term interest rates traditionally have been more stable than long-term interest rates.
c. A firm that borrows heavily long-term is more apt to be unable to repay the debt than the firm that borrows heavily short-term.
d. The yield curve traditionally has been downward sloping.
e. Sales remain constant over the year, and financing requirements also remain constant.
Answer
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Related questions
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Refer to Foxy Ladies Investment Club. What was the portfolio's simple arithmetic average return per year from 2010 through 2012?
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Q:
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