When the Term Structure of Interest Rates Is Downward Sloping

question 110

Multiple Choice

When the term structure of interest rates is downward sloping and interest rates are expected to decline, the

• A) financial manager generally borrows short-term.
• B) financial manager borrows at the lower long-term rates.
• C) corporation's ratio of short-term to long-term debt is low.
• D) none of the other answers are correct

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