The choice offinancing stratees inuatus a uradsorbetnaun rumand risis Question 2 The consenvative financing approach is a strategy that attenpts to match the maturiius oras du vith the maturits of the liabilities with thich they are fiuanuea. 3 pts Question 3 The prime rate is the interest rate the bank charges its most creditworthy customers. True O False

1) Choice of Financing strategy is important in a organization as the success of the organization depends on how thw finance is utilized to achieve the overall goals of the organization. Also each type of financing strategy has particular level of risk and return attached to each. If any strategy has higher risk involved than there are chances that there will be higher profits also.

So, the choice of financing strategy involves a tradeoff of risk and return is True.

2) The Conservative financing approach is a strategy adopted by the organization in which all the financing is carried out by the way of long term debt and equity. So, the statement mentioned in the question that the Conservative financing approach is a strategy that attempts to match the maturities of assets with the maturities of the liabilities with which they are financed is False.

3) Yes, Pirime rate is the rate of interest that a bank charges its most creditworthy customers. So, the given statement is True.