Liquid Asset Ratio Describes

question 33

Multiple Choice

Liquid asset ratio describes:

• A) The minimum ratio of liquid assets to total equity set by the central bank.
• B) The minimum ratio of liquid assets to total liabilities set by the central bank
• C) The minimum ratio of liquid assets to total assets set by the central bank.
• D) None of the listed options are correct.

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Definitions:

Asset Turnover

A financial ratio that measures the efficiency of a company's use of its assets to generate sales revenue.

Property Turnover

A measure of how efficiently a company generates revenue from its assets, often by comparing sales to the average value of property, plant, and equipment.

Current Asset Turnover

A financial metric that measures how efficiently a company uses its current assets to generate revenue, revealing asset management effectiveness.

Interest Coverage

A financial ratio that measures a company's ability to meet its interest payments on outstanding debt.