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:

Conditioned Response

A learned response to a previously neutral stimulus that has become associated with an unconditioned stimulus.

Unwanted Response

A reaction, often in the context of behavior or psychology, that is not desired or intended, sometimes resulting from external stimuli or internal conflicts.

Stimulus Generalization

The tendency for the conditioned response to be evoked by stimuli that are similar to the stimulus that was originally used to condition the response.

Conditioned Response

A learned response to a previously neutral stimulus that has become associated with an unconditioned stimulus.