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question one what calls for matching asset and liability maturities a short-term financing the self-liquidating approach see long-term financing d equity spontaneous approach the correct answer is b self-liquidating approach question two one finances all of the temporary assets with short-term non-spontaneous debt and finances its fixed assets with long-term capital this leads to a aggressive approach b long versus short-term debt c conservative approach d debt financing approach the correct answer is a aggressive approach question 3 the aggressive policy calls for the greatest use of long-term debt while the conservative policy requires the least maturity matching falls in between a true v false the correct answer is b false question four cash balances associated with routine payments and collections are known as a compensating balances b precautionary balances c transaction balances d none of the above the correct answer is c transaction balances question five sometimes cash balance