Which ONE of the following statements about matching maturity strategy is true?

Question

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Matching maturity strategy is a strategy in which the maturity of the assets is matched with the maturity of the liabilities. This means that short-term assets are funded with short-term liabilities, and long-term assets are funded with long-term liabilities. This strategy helps to reduce the risk of interest rate fluctuations and ensures that the company has the resources to meet its obligations as they come due.

Which ONE of the Following Statements About Matching Maturity Strategy