Which of the Following Ratios Is Used to Evaluate a Company's

question 77

Multiple Choice

Which of the following ratios is used to evaluate a company's efficiency in using its assets?

• A) Current ratio.
• B) Debt to assets ratio.
• C) Return on equity ratio.
• D) Asset turnover ratio.

---

Definitions:

Monetary Policies

Actions undertaken by a central bank, currency board, or other regulatory committees to control the supply of money and achieve economic goals such as controlling inflation or encouraging economic growth.

Reserve Requirements

Regulations set by central banks determining the minimum amount of reserves a bank must hold against deposits, used as a tool for controlling the money supply.

Government Securities

Financial instruments issued by a government to borrow money, often considered low-risk investments.

Discount Rate

The rate of interest that central banks impose on the credits they extend to commercial banks or financial entities.