The Demand for Junk Bonds Came Primarily from

question 46

Multiple Choice

The demand for junk bonds came primarily from

• A) life insurance companies
• B) savings & loans association
• C) pension funds
• D) all of the above

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Definitions:

Current Ratio

An indicator of how well a company can handle its immediate debts, assessing its ability to cover obligations maturing in one year or less.

Acid-test Ratio

A financial metric that measures a company's ability to cover its short-term liabilities with its most liquid assets, excluding inventory.

Debt-to-equity Ratio

The debt-to-equity ratio is a financial leverage ratio that compares a company's total liabilities to its shareholder equity, indicating how much the company is financing its operations through debt versus wholly owned funds.

Receivable Turnover

Receivable turnover is a financial ratio that measures how efficiently a company collects its accounts receivable, calculated by dividing net credit sales by average accounts receivable.