The maturity matching or "self-liquidating" approach involves the financing of permanent current assets with combinations of long-term capital and short-term capital depending on the level of interest rates.When short-term rates are high,short-term assets will be financed with long-term debt to reduce cost and risk.

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The maturity matching or "self-liquidating" approach involves financing assets with a similar maturity. Permanent current assets would typically be financed with long-term capital, not a combination depending on interest rates. The strategy described mixes elements of different financing strategies rather than strictly adhering to the maturity matching principle.

The Maturity Matching or "Self-Liquidating" Approach Involves the Financing of Permanent