The maturity matching approach calls for matching the maturities of the firm's:

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The maturity matching approach, also known as the matching principle in finance, suggests that a firm should match the maturity of its assets with the maturity of its liabilities. This means that short-term assets should be financed with short-term liabilities, while long-term assets should be financed with long-term liabilities or equity, ensuring that the cash flows from the assets can be used to pay off the liabilities as they come due.

The Maturity Matching Approach Calls for Matching the Maturities of the Firm's