Which statement best describes working capital financing policy?

a$.$ Although short$-$term interest rates have historically averaged less than long$-$term rates, the heavy use of short$-$term

debt is considered to be an aggressive strategy because of the inherent risks of using short$-$term financing.

b$.$ Net working capital may be defined as current assets minus current liabilities, and an increase in the current ratio

automatically indicates that net working capital has increased.

c$.$ If a company follows a policy of "matching maturities," this means that it matches its use of common shares with its

use of long$-$term debt as opposed to short$-$term debt.

d$.$ If a company follows a conservative policy, short$-$term debt will be used to to finance all permanent assets as well as

to meet some seasonal needs.