Large companies build up short-term debt over the period of 1 to 2 years and then sell long-term debt using a portion of the proceeds to repay the short-term borrowings. This procedure is called ______.

Question

Quizplus · Accepted Answer

This procedure is called funding short-term debt, as the company is using the proceeds from selling long-term debt to repay their short-term borrowings.

Large Companies Build Up Short-Term Debt Over the Period of 1