1. If the economy is in a decline, which type of current asset financing should be used?

a. compromise financing policy,

b. flexible financing policy,

c. restrictive financing policy,

d. maturity matching financing policy.

2. Which type of current asset financing policy is riskiest?

a. compromise financing policy,

b. flexible financing policy,

c. restrictive financing policy,

d. maturity matching financing policy.

3. Which type of current asset financing policy provides the lowest expected return?

a. compromise financing policy,

b. flexible financing policy,

c. restrictive financing policy,

d. maturity matching financing policy.