Which of the Following Statements Best Completes the Following Sentence;

question 46

Multiple Choice

Which of the following statements best completes the following sentence; "Prior to World War I, when the U.S. was on the gold standard, inflation in the U.S…."?

• A) averaged 3.5 percent per year but was highly variable.
• B) averaged less than one percent per year and was highly variable.
• C) averaged less than one percent per year and was stable.
• D) averaged 3.5 percent per year and was stable.

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Definitions:

Asset Utilization Ratios

Ratios that measure how well a firm uses its assets to generate each $1 of sales.

Short-Term Assets

Assets that are expected to be converted into cash or used up within one year or within the business's operating cycle if longer than a year.

Quick Ratio

A financial metric that measures a company's ability to meet its short-term obligations with its most liquid assets.

Liquidity

The ease with which an asset can be converted into cash without affecting its market price.