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.

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Definitions:

Dodge Brothers

Historical figures known for their role in the early automotive industry, particularly for founding the Dodge Brothers Company.

General Motors

An American multinational corporation that designs, manufactures, markets, and distributes vehicles and vehicle parts.

Figurative Marketing

The use of metaphorical or symbolic language to promote or sell products in a way that evokes imagination.