4. Which of the following statements are correct concerning a flexible short-term financial policy? A flexible policy is most appropriate when carrying costs are low relative to shortage costs. A flexible policy entails the use of maintenance of large cash balances. A flexible policy is associated with low costs of not having enough inventory on hand The optimal current asset holdings are higher under a flexible policy than under a restrictive policy I and Il only b. 1 and III only c. Il and III only I1 and IV only III. IV. a. d. e. 1., and IV only