A flexible short$-$term financial policy:

a$.$

tends to cause more production interruptions than does a restrictive policy due o inventory shortages.

b$.$

tends to indicate that the carrying costs of a firm are relatively high as compared to the shortage costs.

c$.$

tends to increase the cash inflows of a firm in the future more so than a restrictive policy does.

d$.$

tends to lower the selling prices that can be charged versus the prices under a restrictive policy.