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.

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Definitions:

Metered-Dose Inhaler

A device that delivers a specific amount of medication to the lungs in the form of a short burst of aerosolized medicine.

Spacer

A device used with an inhaler to make it easier to receive medication by creating space between the mouth and the inhaler, improving drug delivery to the lungs.

Eye Medications

Drugs formulated specifically for application in the eyes to treat a variety of ocular conditions.

Gastric Suction

A medical procedure to remove the contents of the stomach through a tube inserted through the nose or mouth, often used to prevent nausea, vomiting, or to clear the stomach before surgery.