The Principle of Matched Maturities in Finance Refers To

question 55

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-term financing.
• 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.

---

Definitions:

Sutherland

An American sociologist, Edwin H. Sutherland is famous for developing the Differential Association theory, emphasizing that criminal behavior is learned through social interactions.

Differential Association

A theory in criminology that proposes individuals learn criminal behavior through interaction with others.

Criminality

The state of being involved in criminal activities or the tendency to commit crimes.

Group Phenomenon

Behaviors, attitudes, or outcomes that emerge from the interactions and dynamics within a group, not predictable by individual members' characteristics alone.