Although short-term interest rates have historically averaged less than long-term rates,the heavy use of short-term debt is considered to be an aggressive current asset financing strategy because of the inherent risks of using short-term financing.

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The statement is true. While short-term interest rates have historically been lower than long-term rates, relying heavily on short-term debt can be risky due to the potential for interest rate increases and the need for continual refinancing. This type of financing strategy is considered aggressive and should be approached with caution.

Although Short-Term Interest Rates Have Historically Averaged Less Than Long-Term