The Maturity Matching, or "Self-Liquidating," Approach to Financing Involves Obtaining

question 92

True/False

The maturity matching, or "self-liquidating," approach to financing involves obtaining the funds for permanent current assets with a combination of long-term capital and short-term capital that varies depending on the level of interest rates.When short-term rates are relatively high, short-term assets will be financed with long-term debt to reduce costs.

---

Definitions:

Anonymity

The condition of being anonymous, where an individual's identity is unknown or concealed.

Large Blocks

Trades involving a significantly large quantity of stocks or securities, typically used by institutional investors.

ECNs

Electronic Communication Networks are automated systems that match buy and sell orders for securities in the financial markets.

NYSE Arca

An electronic securities exchange in the United States where stocks and options are traded.