Which of the Following Statements Is FALSE

question 33

Multiple Choice

Which of the following statements is FALSE?

• A)Financing part or all of the permanent working capital with short-term debt is known as an aggressive financing policy.
• B)When the yield curve is downward sloping,the interest rate on short-term debt is lower than the rate on long-term debt.In that case,short-term debt may appear cheaper than long-term debt.
• C)The value of short-term debt is less sensitive to the firm's credit quality than long-term debt;therefore,its value will be less affected by management's actions or information.
• D)Permanent working capital is the amount that a firm must keep invested in its short-term assets to support its continuing operations.

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Definitions:

Expiratory Reserve

The additional amount of air that can be expelled from the lungs after a normal exhalation.

Internal Nares

The internal nares, also known as the choanae, are openings at the back of the nasal cavity leading into the pharynx, facilitating airflow from the nose to the throat.

Nasal Cavity

The hollow space within the nose through which air flows, filtered, warmed, and humidified, also housing olfactory receptors.

Soft Palate

The soft tissue constituting the back of the roof of the mouth, separating the oral cavity from the nasal passages.