The hedging principle is used to address the issue of how much short-term financing a firm should use.

Name: The hedging principle is used to address the issue of how much short-term financing a firm should use.
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The hedging principle, also known as the matching principle, suggests that a firm should finance its short-term assets with short-term liabilities and long-term assets with long-term liabilities, thus addressing the issue of how much short-term financing to use.

The Hedging Principle Is Used to Address the Issue of How