Which of the following statements concerning liquidity and debt is true?

A) The greater use of short-term debt, the lower the risk of illiquidity.

B) Long-term debt is generally less costly than short-term debt.

C) A firm can reduce its risk for illiquidity by shifting from short-term debt to long-term debt.

D) The risk of illiquidity does not depend on the mix of short-term versus long-term debt.