Firms manage a variety of current assets. Permanent current assets are necessary for firms to maintain their businesses, and they will be carried even through downturns in business cycles. Temporary current assets fluctuate seasonally or with business cycles. Firms must devise a financing strategy that best fits their business situation and that best manages their risk. Use the following table to identify the different current asset financing policies. Description Financing Policy Long-term capital finances all permanent assets, but short-term debt finances temporary current assets This current asset financing policy tends to be the safest current asset financing policy; however, it also tends to be less profitable than the other policies. This current asset financing policy exposes the firm to the greatest amount of risk from rising interest rates and loan renewal problems. Maturity matching approach Conservative approach Aggressive approach Suppose a firm wants to take advantage of an upward-sloping yield curve. If the firm believes that interest rates will stay constant and it wants to use the current yield curve to bolster profits, which approach should the firm follow? O Maturity matching approach Conservative approach O Aggressive approach