Which of the following illustrates the use of a hedging (or matching) approach to financing?

Short-term assets financed with equity.

Short-term assets financed with long-term liabilities.

Permanent working capital financed with long-term liabilities.

All assets financed with 50 percent equity, 50 percent long-term debt mixture.

Which of the following illustrates the use of a hedging (or matching)

1.	Which of the following illustrates the use of a hedging (or matching) approach to financing?
A.	Short-term assets financed with long-term liabilities.
B.	Permanent working capital financed with long-term liabilities.
C.	Short-term assets financed with equity.
D.	All assets financed with 50 percent equity, 50 percent long-term debt mixture.
Answer» C. Short-term assets financed with equity.