The optimal current asset holdings are higher under a ﬂexible policy than under a restrictive policy.

Name: The optimal current asset holdings are higher under a ﬂexible policy than under a restrictive policy.
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A flexible policy allows a company to hold higher current asset levels as it can quickly adjust to changes in market conditions, while a restrictive policy limits current asset levels, which may result in insufficient liquidity and missed business opportunities.

The Optimal Current Asset Holdings Are Higher Under a ﬂExible