Which of the Following Ratios Would Be a Measure of Market

question 25

Multiple Choice

Which of the following ratios would be a measure of market risk?

• A)Nonperforming Loans/Net Loans
• B)Net Loans/Total Assets
• C)Cash and equivalents/Total assets
• D)Equity Capital/Total Assets
• E)None of the options is correct

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Definitions:

Cost Of Goods Sold

The total cost directly involved in producing goods or services, including materials and labor.

Net Income

The amount of money left after all expenses, taxes, and costs have been subtracted from a company's total revenue.

Inflation

The rate at which the general level of prices for goods and services is rising, eroding purchasing power.

Phantom Profits

Profits recorded in the accounting books but not actually realized through cash transactions, potentially leading to a misleading financial condition.