Suppose a firm wants to take advantage of an upward-sloping yield curve. If the firm believes that interest rates will stay constant and it wants to use the current yield curve to bolster profits, which approach should the firm follow?

Maturity matching approach

Aggressive approach

Conservative approach

Suppose a firm occasionally faces demand for short-term credit but usually has an excess of short-term capital to finance current assets. Which approach is the firm following?

Conservative approach

Aggressive approach

Maturity matching approach

Which usually costs lessshort-term or long-term debt?

Short-term debt

Long-term debt