Firms generally choose to finance temporary current operating assets with short-term debt because:
a) matching the maturities of assets and liabilities reduces risk under some circumstances, and also because short-term debt is often less expensive than long-term capital
b) short-term interest rates have traditionally been more stable than long-term interest rates
c) a firm that borrows heavily on a long-term basis is more apt to be unable to repay the debt than a firm that borrows short-term
d) short-term debt has a higher cost than equity capital