The Greater the Times Interest Earned Ratio,the More Risk a Company

question 168

True/False

The greater the times interest earned ratio,the more risk a company is exposed to.

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Definitions:

Millennium

A period of one thousand years.

Federal Reserve Policy

The monetary policy actions by the Federal Reserve, aimed at influencing economic conditions, particularly interest rates and inflation.

Economic Downturn

A period of reduced economic activity characterized by declining GDP, falling incomes, and rising unemployment.

New Deal

Initiatives involving public works, financial reforms, and regulatory measures, launched by President Franklin D. Roosevelt in the 1930s in the United States, designed to assist in overcoming the effects of the Great Depression.