Explore BrainMass

Explore BrainMass

    Advantages and disadvantages - matching maturities of assets and liabilities

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    What are the advantages of matching maturities of assets and liabilities? What are the disadvantages?

    © BrainMass Inc. brainmass.com October 6, 2022, 1:36 pm ad1c9bdddf

    Solution Preview

    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 ...

    Solution Summary

    This solution explains the advantages and disadvantages of matching maturities of assets and liabilities.