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

question 130

True/False

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 operating asset financing strategy because of the inherent risks of using short-term financing.

---

Definitions:

State Court Systems

The courts within a specific state that handle legal disputes and matters according to that state's laws, as opposed to federal courts.

General Jurisdiction

The authority of a court to hear cases of all types, including both civil and criminal matters, without limitation to a specific subject matter.

Intermediate Appellate Courts

Courts that serve as an intermediate step between lower trial courts and the highest court within a jurisdiction, reviewing decisions and ensuring adherence to legal principles.

State Court Judges

Judicial officers who preside over matters within their respective state courts, ruling on civil and criminal cases according to state law.