The Principle of "Matched Maturities" in Finance Refers To

question 121

Multiple Choice

The principle of "matched maturities" in finance refers to:

• A)finding sources of funds with the longest maturity, in order to avoid liquidity crises
• B)funding long-term assets with long-term sources, and short-term assets with short terms borrowings.
• C)using as much short-term financing as possible due to the lower cost of interest
• D)buying marketable securities when demand is high and borrowing short term when demand is low