With a ____ funding strategy, investment decisions are made with the objective of generating cash flows that match planned outflow payments.
A) matched
B) mixed
C) projective
D) none of the above

Question

Quizplus · Accepted Answer

A matched funding strategy is the best choice as it aligns investment decisions with the objective of generating cash flows that match planned outflow payments. This helps to ensure that there is sufficient cash flow to cover payments when they are due, reducing the risk of default or other financial issues. On the other hand, a mixed or projective funding strategy does not have this alignment and may lead to cash flow mismatches and other financial challenges.

With a ____ Funding Strategy, Investment Decisions Are Made with the Objective