A Liquidity Ratio of 2.0 Means That

question 100

Multiple Choice

A liquidity ratio of 2.0 means that

• A)there are $3 in liquid assets for every $1 in short-term debt.
• B)there will be difficulty handling short-term payments.
• C)there is $1 in liquid assets for every $2 in short-term debt.
• D)there are $2 in liquid assets for every $1 in short-term debt.

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Definitions:

Anemia

A condition characterized by a deficiency of red blood cells or hemoglobin, leading to a lack of oxygen transport in the body.

Iron

A metallic element used by the body to transport oxygen and support metabolism.

Antioxidants

Substances that can prevent or slow damage to cells caused by free radicals, often found in foods like fruits and vegetables.

Cheese

A dairy product made from pressed milk curds, known for its wide range of flavors, textures, and forms.