The hedging principle is also called the principle of self-liquidating inventory.

Name: The hedging principle is also called the principle of self-liquidating inventory.
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The hedging principle, often related to financing, suggests matching the maturity of investments with the timing of needs. It is not the same as the principle of self-liquidating inventory, which refers to using short-term financing to purchase inventory that will be sold to repay the loan.

The Hedging Principle Is Also Called the Principle of Self-Liquidating