Which of the Following Groups of Ratios Primarily Measure Risk

question 101

Multiple Choice

Which of the following groups of ratios primarily measure risk?

• A) liquidity, activity, and profitability
• B) liquidity, profitability, and market
• C) liquidity, activity, and debt
• D) activity, debt, and profitability

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Definitions:

Induced Consumption

Consumer spending that increases when income increases and decreases when income decreases, other than spending necessary for basic needs.

Disposable Income

Monetary sums available to households for the prioritization of spending and saving after income tax payouts.

Disposable Income

Money in hand for households dedicated to saving and spending after navigating through income taxes.

APS

The ratio of savings to income, indicating the proportion of income that is saved rather than spent.