Which of the Following Statements Is FALSE

question 33

Multiple Choice

Which of the following statements is FALSE?

• A)Financing part or all of the permanent working capital with short-term debt is known as an aggressive financing policy.
• B)When the yield curve is downward sloping,the interest rate on short-term debt is lower than the rate on long-term debt.In that case,short-term debt may appear cheaper than long-term debt.
• C)The value of short-term debt is less sensitive to the firm's credit quality than long-term debt;therefore,its value will be less affected by management's actions or information.
• D)Permanent working capital is the amount that a firm must keep invested in its short-term assets to support its continuing operations.

---

Definitions:

ANS

Acronym for Autonomic Nervous System, which controls involuntary body functions like heartbeat, digestion, and breathing.

Parasympathetic Nervous System

A branch of the autonomic nervous system responsible for conserving energy and promoting "rest and digest" responses.

Postganglionic Axons

The axons of neurons that relay signals from the autonomic ganglia to the target organs in the peripheral nervous system.

Preganglionic Fibers

Nerve fibers that extend from the central nervous system to the ganglia in the autonomic nervous system.