Which Statement Is True

question 97

Multiple Choice

Which statement is true?

• A) The less liquid assets a firm holds, the less likely it is that the firm will experience financial distress.
• B) The lower the liquidity ratios, the less liquidity risk a firm has.
• C) Liquid assets generate profits for the firm.
• D) Extremely high levels of liquidity guard against liquidity crises, but at the cost of lower returns on assets.

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Definitions:

Figure-Ground Organization

A principle of perception that enables us to distinguish objects (figure) from their background (ground) based on factors like contrast and contour.

Bottom-Up Processing

An approach in perception where processing starts with the sensory input and works its way up to the formation of a perception without preconceived knowledge.

Size Constancy

The phenomenon that one’s perception of an object remains constant even as the retinal image of the object changes size (e.g., because the object has moved closer to or farther away from the perceiver).

Odd-Quadrant Discrimination

A cognitive test focusing on the ability to distinguish between stimuli that vary according to a specific criterion, placed in non-standard quadrants.