Firms That Use Maturity Hedging as a Guide to Financing

question 1

Multiple Choice

Firms that use maturity hedging as a guide to financing policy:

• A) try to hedge with futures contracts.
• B) hold excess cash balances to reduce risk.
• C) will finance long term assets with long term financing.
• D) rely on government policy to keep interest rates low.

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Definitions:

Sustainability Reporting

The practice of disclosing a company's environmental, social, and governance (ESG) impacts and sustainability practices to stakeholders.

Performance Metrics

Quantitative measures used to gauge an organization's performance in various areas.

Balanced Scorecard

A strategic planning and management system used by organizations to communicate what they are trying to accomplish, align the day-to-day work with strategy, and monitor performance against strategic goals.

Balanced Scorecard

A system of strategic planning and management designed to align organizational activities with its vision and strategy, enhance communication both internally and externally, and track the performance of the organization in relation to its strategic objectives.