Long-term funds may be used by a financial manger to cover short-term needs and protect against the danger of not being able to provide adequate short-term financing during tight money periods.

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This strategy is known as asset-liability management, where long-term funds are used to cover short-term needs and minimize the risk of not being able to provide adequate short-term financing during tight money periods. However, it is important to note that this strategy should only be used in a carefully planned and controlled manner to avoid creating long-term financial issues.

Long-Term Funds May Be Used by a Financial Manger to Cover