Which working capital financing approach uses short-term funds to finance temporary current assets and long-term funds to finance permanent current assets? MCQ with Answer and Explanation
Which working capital financing approach uses short-term funds to finance temporary current assets and long-term funds to finance permanent current assets?
A. Matching (Hedging) Approach
B. Conservative Approach
C. Aggressive Approach
D. Zero Working Capital Approach
Answer: Option A
Solution (By JKSSB Mock Tests)
The matching approach synchronizes the maturity of the financing source with the life of the asset being financed.
Explanation:
Rule 3 of GFR 2017 states that every government servant is expected to maintain absolute integrity, absolute honesty, and absolute devotion to duty in the performance of their official duties.
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