Large Companies Build Up Short-Term Debt Over the Period of 1

Multiple Choice

Large companies build up short-term debt over the period of 1 to 2 years and then sell long-term debt using a portion of the proceeds to repay the short-term borrowings. This procedure is called ______.

A) "drawing down" long-term credit
B) funding short-term debt
C) reducing the tax bite
D) extending the rates