Which of the Following Combinations of Asset Structures and Financing

question 109

Multiple Choice

Which of the following combinations of asset structures and financing patterns is likely to create the least volatile earnings?

• A) Illiquid assets and heavy short-term borrowing
• B) Illiquid assets and heavy long-term borrowing
• C) Liquid assets and heavy long-term borrowing
• D) Liquid assets and heavy short-term borrowing