Banks Can Use the Times Interest Earned Ratio as a Measure

question 95

True/False

Banks can use the times interest earned ratio as a measure of a borrower's ability to repay their loan.

---

Definitions:

Fiat Currencies

Money that a government has declared to be legal tender, though it is not backed by a physical commodity.

Digital Currencies

Electronic money that exists in a digital form, enabling instant transactions and borderless transfer-of-ownership.

Valueless

Lacking in value, importance, or utility; having no worth or significance.

Constant Value

A value that remains unchanged over a period of time, despite external factors or conditions that might otherwise cause variation.