Choose the Appropriate Letter of the Financial Performance Category to Match

question 131

Essay

Choose the appropriate letter of the financial performance category to match the following financial performance ratio of that category.
P - Profitability
L - Liquidity
S - Solvency
_____ Debt to assets ratio
_____ Receivables turnover ratio
_____ Fixed asset turnover ratio
_____ Current ratio
_____ Return on equity
_____ Price earnings ratio
_____ Times interest earned ratio
_____ Quick ratio
_____ Inventory turnover ratio
_____ Earnings per share

---

Definitions:

Equilibrium Interest Rate

The interest rate at which the demand for loanable funds equals the supply of loanable funds in the economy, balancing saving and borrowing.

Expansionary Monetary Policy

Central bank strategies aimed at increasing the money supply to stimulate economic growth.

Demand For Investment

The desire or willingness of individuals or businesses to allocate resources towards new capital or projects expecting future returns.

Money Supply Curve

A graphical representation of the relationship between the money supply and the interest rate in an economy.