Which statement is correct?

Multiple Choice

Long$-$term interest rates tend to be more volatile than short term rates.

Firms that follow restrictive financial policies can generally avoid shontherm debt fruancing.

Short$-$term borrowing is generally more expersive then long$-$term borrowing$-$

A firm is less apt to face financial distress if it adopts a flexble financial policy rather than a restrictive pollicy.

Firms should generally finance all of their assets with long$-$term debt.