12. Using the graph below that shows a Current Asset Financing Policy, answer the True and False questions below. (10 pts) Dollars Temporary Current Assets Short-Term Nonspontaneous Debt Financing Permanent Level of Current Assets Long-Term Debt plus Equity plus Spontaneous Current Liabilities Fixed Assets 1 2 3 4 5 6 7 8 Time Period Circle the correct answer. 1. Ler F This graph demonstrates the "Relative Aggressive approach to financing current assets. 2. L or F Only a portion of permanent current assets are financed with long term funding which exposes the firm to changes in the short term credit markets. 3. L or F This approach utilizes short term borrowing and potentially has the ability To increase ROI. 4. I or F This policy increases risk and can impact a firm's long term financial viability, especially during credit borrowing bubbles in the economy. 5. I or F This policy actually reduces the risk of financing current assets because it uses short term interest rates