An Example of a Liquidity Ratio Is _______

question 2

Multiple Choice

An example of a liquidity ratio is _______.

• A)fixed asset turnover
• B)current ratio
• C)acid test or quick ratio
• D)A and C
• E)B and C

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Definitions:

Value-Weighted Index

An index in which the weight of each constituent is proportional to its market value, emphasizing larger companies.

Price-Weighted Index

A stock market index in which each company's influence on the index's performance is proportional to its stock price.

Bond Price Index

A measure that tracks changes in the prices of a basket of bonds over time, reflecting the overall performance of the bond market.

Equally Weighted Index

A stock market index where each stock has the same weight or importance, regardless of the company's size.