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The matching principle: a. contends that short-term assets should be financed with short-term liabilities and longer-term assets should be financed with longer-term sources of funds.

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The matching principle: a. contends that short-term assets should be financed with short-term liabilities and longer-term assets should be financed with longer-term sources of funds. b. applies to corporations that hold real assets but not to financial institutions. c. contends that, in general, assets should be financed by short-term sources of funds that can be rolled over to provide longer term finance. d. contends that assets should be funded with an equal amount of liabilities. e. is only relevant to the individual, household and government sectors

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