56. Why is an analysis of the pattern and variability of the investing company's cash flows so important as part of the short-term investment process? it guides dollar amounts and maturities of investments it insures that state and federal regulations are met it protects the investment manager against shareholder lawsuits it ensures that the company's brokers and banks do not trick the company into making overly risky investments 57. Why should the investment officer be concerned about the loan covenants on the company's loans? they may force the company to invest in high-risk, high-return securities in order to have enough interest revenue to pay the loan's interest expense they may include fine print forcing the company to engage in illegal activities they may prohibit certain types and/or amounts of investments all of the above 58. When determining how much of the firm's total assets to invest in cash and securities, a low-liquidity strategy entails investing ___________ of the assets in cash and securities, earning ____________ expected profits in total. relatively less, relatively more relatively more, relatively more relatively less, relatively less relatively more, relatively less 59. A "clean up" is: a periodic payment of all interest a borrower owes to date on a line of credit a period of time over which the lender defers interest to a later date on a borrower's line of credit a period of time over which a company reduces its outstanding balances to zero on order to demonstrate has not become permanent capital the removal of the compensating balance requirement on a line of credit 60. The minimum level of ongoing inventory and receivables is what is referred to as ______________ current assets. transitory modifiable discretionary permanent