4. Current asset investment policies On the surface, it seems that a firm would want to hold high levels of current assets to ensure its liq ability to meet all of its short-term obligations. However, current assets are not very productive and generat Aa Aa uidity and its e ver Therefore, a firm must strike a balance and hold those types and quantity of current assets that work best for it. In the following table, identify which current asset investment policy is most likely to work best for each firm. Current Asset Investment Policy Moderate Conservative Aggressive Universal Assemblers Inc. uses a current asset investment policy that results in the relatively longest cash conversion cycle. Frasier Furnishings tries to hold optimalO levels of current assets (including cash, marketable securities, accounts receivable, and inventory), such that it balances the potential costs of running through its assets with the cost of holding balances in those assets. Tolbotics Inc. minimizes current assets (including cash, marketable securities, accounts receivable, and inventory) as much as possible