A firm's asset or capital requirements grow over time and usually exhibit temporal (seasonal) variation. Firms must solve the challenge of how to finance their assets with a combination of short- and long-term financing. The following graph exhibits this relationship for a particular firm DOLLARS Long-term Financing Asset Requirements TIME Which of the following best characterizes this firm's policy of financing assets? O Conservative policy O Moderate policy O Aggressive policy Note the shaded region on the preceding graph. Which of the following statements best describes the firm's situation during this time? The firm has excess capital to invest in cash or marketable securities O The firm must rely on short-term borrowing