The Principle of "Matched Maturities" in Finance Refers To

question 7

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 vice versa
• 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