Which of the following statements is incorrect?

Group of answer choices

Under the short-term working capital funding strategy, short-term debt to finance all seasonal working capital, a portion of the permanent working capital and fixed assets.

Carrying costs arise mainly from illiquidityshortage of cash or a lack of marketable securities to sell for cash.

All the answers are correct except one.

The flexible current asset management strategy calls for management to invest large amounts in cash, short-term investments, and inventory.

Under the matching maturities working capital financing strategy, short-term assets are funded with short-term financing and long-term assets are funded with long-term financing.