2. Financing current assets What are the current asset financing strategies that firms adopt? Firms manage a variety of current assets. Permanent current assets are needed for the firm to maintain its business, and they will be carried even through downturns in business cycles. Temporary current assets fluctuate seasonally or with business cycles. Each firm must devise a financing strategy that best fits its business situation and best manages its risk. Long-term capital finances all permanent current assets and some temporary financing needs. Which current asset financing policy is consistent with this statement? O Conservative approach O Aggressive approach O Maturity matching approach Long-term capital finances all permanent assets, but short-term debt finances temporary current assets. Which current asset financing policy is consistent with this statement? O Aggressive approach O Maturity matching approach O Conservative approach Long-term capital finances some of the permanent current assets, but short-term debt finances all temporary current assets and some permanent assets. Which current asset financing policy is consistent with this statement? O Conservative approach O Aggressive approach O Maturity matching approach