In general, when interest rates are expected to rise, financial managers Multiple Choice balance the company's debt structure with more short-term debt and less long-term debt. try to lock in long-term financing at low cost. accept more risk. rely more on internal sources of funds rather than external sources.

Pam is a low-risk careful driver and fran is a high-risk aggressive driver. to reveal their driver types, an auto-insurance company a. refuses to insure high-risk drivers b. charges a higher premium to owners of newer cars than to owners of older cars c. offers policies that enable drivers to reveal their private information d. uses a pooling equilibrium e. requires drivers to categorize themselves as high-risk or low-risk on the application form