Your Boss Decides That Your fiRm Will Switch from a Restrictive

Your boss decides that your firm will switch from a restrictive short-term financial policy to a more flexible policy. You should expect to see the firm's current ratio:

A) Rise, due to the higher investment in current assets and the reduced use of short-term financing.
B) Fall, due to the lower investment in current assets and the increased reliance on short- term financing.
C) Rise, due to the lower investment in current assets and the greater use of short-term financing.
D) Fall, due to the higher investment in current assets and the reduced use of short-term financing.
E) To either rise or fall, but the use of short-term debt will increase.