Chapter 6 introduces you to the Working Capital Financing Decision; how a company procures, receives , cash to run their day to day operations. I would like you to discuss the nature of short term vs long term assets, sources of cash, and why short term financing is riskier, and offers lower liquidity than long term financing. Discuss why in a "normal" interest rate environment (our current environment), short term interest rates are lower than long term interest rates. Feel free to use your own experiences when taking out a loan, how and why the rate on a 3 year car loan is lower than the rate on a 5 year car loan, or the rate on a 15 year mortgage is lower the the rate on a 30 year mortgage,

1. In your own words please.