What are the advantages of matching maturities of assets and liabilities? What are the disadvantages?© BrainMass Inc. brainmass.com March 4, 2021, 7:51 pm ad1c9bdddf
Financing of Current Assets also involves a trade-off between risk and return. A firm can choose from short- or long-term sources of finance. If the firm uses more of short-term funds for financing both current and fixed assets, its financing policy is considered aggressive and risky. Its financing policy ...
This solution explains the advantages and disadvantages of matching maturities of assets and liabilities.