Low levels of inventory lead to higher profit margins

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Which of the following statements is TRUE?

a. Short term debt tends to be more expensive than long term debt

b. Low levels of inventory lead to higher profit margins.

c. Maturity matching is generally considered to be an aggressive financing policy.

d. Some firms choose to hold highly liquid, short-term securities as a substitute for demand deposits because securities earn interest and can be quickly converted to cash should cash be needed.

Reference no: EM13847747

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