maturity matching, or "self-liquidating," approach to financing involves obtaining the funds for permanent current assets with a combination of long-term capital and short-term capital that varies depending on the level of interest rates When short-term rates are relatively high, short-term assets will be financed with long-term debt to reduce costs.

Question

Quizplus · Accepted Answer

The maturity matching approach involves financing short-term assets with short-term liabilities and long-term assets with long-term liabilities, not varying based on interest rates.

Maturity Matching, or "Self-Liquidating," Approach to Financing Involves Obtaining the Funds