Question: Match the following with the items below: 1. temporary current assets Long-term interest rates reflect the average of expected short-term rates over the life of
Match the following with the items below:
1. "temporary" current assets | Long-term interest rates reflect the average of expected short-term rates over the life of the long-term security. | ____ |
2. self-liquidating assets | The financing and management of the current assets of the firm. | ____ |
3. level production | Assets that are assumed to be long term in nature. | ____ |
4. working capital management | Current assets that will not be reduced or converted to cash within the normal operating cycle of the firm. | ____ |
5. expected value | Depicts in graphical form the relationship between interest rates and maturities for securities of equal risk. | ____ |
6. trade credit | Financing provided by sellers or suppliers in the normal course of business. | ____ |
7. market segmentation theory | Time periods in which financing may be difficult to find and interest rates may be quite high by normal standards. | ____ |
8. point of sales terminals | Equal monthly production used to smooth out production schedules and employ manpower and equipment more efficiently. | ____ |
9. term structure of interest rates | A representative quantity from a probability distribution arrived at by multiplying each outcome times the associated probability and summing up the products. | ____ |
10. expectations hypothesis | Current assets that will be reduced or converted to cash within the normal operating cycle of the firm. | ____ |
11. tight money | The relative convertibility of short-term assets to cash. | ____ |
12. Liquidity | Computer terminals in retail stores that may be used for inventory control or other purposes. | ____ |
13. "permanent" current assets | Assets that are converted to cash within the normal operating cycle of the firm. | ____ |
14. fixed assets | The relationship of short and long-term interest rates relies on the maturity preference of various financial institutions. | ____ |
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