Conservative policy for financing working capital, Financial Econometrics

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Q. Conservative policy for financing working capital?

A conservative policy for financing working capital is one where short-term finance is usedto fund:

A: All of the fluctuating current assets, but no part of the permanent current assets.

B: All of the fluctuating current assets and part of the permanent current assets.

C:Part of the fluctuating current assets and part of the permanent current assets.

D: Part of the fluctuating current assets, but no part of the permanent current assets.

Solution:

The answer is D.


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