Which Ratio Would You Use to Measure the Financial Health

question 120

Multiple Choice

Which ratio would you use to measure the financial health of a firm by assessing that firm's leverage?

• A)debt-equity or equity multiplier ratio
• B)market-to-book ratio
• C)market debt-equity ratio
• D)current or quick ratio
• E)price-to-book ratio

---

Definitions:

WTO

The World Trade Organization, an international body that deals with the rules of trade between nations, aiming to ensure that trade flows as smoothly, predictably, and freely as possible.

Agricultural Commodities

Products derived from farming and agriculture that are traded, sold, and used as staples in food supply chains.

European Union

A political and economic union consisting of 27 European countries that have agreed to follow common economic, social, and security policies.

Domestic Currencies

The legal currencies in circulation within a specific country, used for the majority of financial transactions within that country.