QUESTION 3

?A moderate current asset investment policy is one:

	a.	?under which the level of accounts receivable is always greater than the level of accounts payable.
	b.	?that lies between the relaxed and restrictive current asset investment policies.
	c.	?under which holdings of cash and marketable securities, inventories, and receivables are minimized.
	d.	?that calls for relatively large amounts of current assets to be carried.
	e.	which emphasizes on holding equal amount of current assets and current liabilities.?

2 points

QUESTION 4

The moderate approach to current asset financing is the least profitable but the safest of all the three approaches.

True

False

QUESTION 6

All else equal, firms that hold greater amounts of short-term assets are considered riskier than firms that hold greater amounts of long-term securities.

True

False

2 points

QUESTION 7

A firm must pay _____ costs even if it produces and sells nothing.?

	a.	?breakeven
	b.	?lumpy
	c.	?direct labor
	d.	?fixed
	e.	?variable