Firms Generally Choose to Finance Temporary Current Assets with Short-Term

question 22

Multiple Choice

Firms generally choose to finance temporary current assets with short-term debt because

• A) matching the maturities of assets and liabilities reduces risk under some circumstances,and also because short-term debt is often less expensive than long-term capital.
• B) short-term interest rates have traditionally been more stable than long-term interest rates.
• C) a firm that borrows heavily on a long-term basis is more apt to be unable to repay the debt than a firm that borrows short term.
• D) the yield curve is normally downward sloping.
• E) short-term debt has a higher cost than equity capital.

Examine the ideology driving punitive punishment policies.

Understand the legal and unethical outcomes resulting from mandatory minimum sentences and moral panics.

Understand the origins and impacts of the War on Drugs.

Recognize the shifting public opinion on punitive policies including the death penalty.

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Definitions:

Trism

Involuntary muscle spasm of the jaw muscles, leading to difficulty in opening the mouth; often referred to as trismus.

Cancer

A disease characterized by the uncontrolled growth and spread of abnormal cells in the body.

Latin

An ancient Italic language historically spoken in the Roman Empire, now used primarily in Vatican City and as a liturgical language in the Roman Catholic Church.

Lobster

A marine crustacean with a long body, muscular tail, and live in burrows on the sea floor.