A Moderate Current Asset Investment Policy Is One

Multiple Choice

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) which emphasizes on holding equal amount of current assets and current liabilities.
C) that calls for relatively large amounts of current assets to be carried.
D) under which holdings of cash and marketable securities, inventories, and receivables are minimized.
E) that lies between the relaxed and restrictive current asset investment policies.