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Firms Generally Choose to Finance Temporary Current Assets with Short-

Question 78

Multiple Choice

Firms generally choose to finance temporary current assets with short- term debt because:


A) banks prefer to make so called self- liquidating loans.
B) they must do so according to GAAP
C) short- term rates tend to be more stable than long- term rates.
D) it would be impossible to get long- term debt for that purpose

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