Asset Liquidity Financing Plan Low Liquidity High Liquidity Short Term 1 High Profit High Risk Long Term
Fantastic news! We've Found the answer you've been seeking!
Question:
| Asset Liquidity | ||
| Financing Plan | Low Liquidity | High Liquidity |
| Short Term | 1 High Profit High Risk | |
| Long Term | 4 Low Profit Low Risk |
Why is Box #1 considered High Profit?
| Because short term interest rates are normally higher than long term interest rates. | ||
| Because short term interest rates are normally lower than long term interest rates. | ||
| Because short term interest rates and long term interest rates are normally the same. | ||
| None of the above |
Expert Answer:
Posted Date:
