A Manager That Uses Ratios Such as Cash and Deposits

question 70

Multiple Choice

A manager that uses ratios such as cash and deposits due from banks to total assets and U.S.government securities to total assets to measure a firm's liquidity position is using:

• A)the sources and uses of funds approach.
• B)the structured funds approach.
• C)the liquidity indicator approach.
• D)signals from the market place.
• E)None of the options is correct.

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Definitions:

Extinction

In behavioral psychology, the process by which a previously learned response decreases in frequency or disappears when reinforcement is withheld.

Inhibition

A psychological or physiological process that decreases or suppresses certain behaviors, emotions, or actions.

Suppression

The conscious deliberate effort to control and inhibit unwanted or unacceptable thoughts, feelings, or impulses.

Conditioned Forgetting

The loss of a memory due to interference from learning through conditioning, rather than organic causes.