What Is the Current Ratio

question 26

Multiple Choice

What is the current ratio?

• A)Current liabilities/current assets.
• B)Current assets/current liabilities.
• C)Liquid assets/total monthly household expenses.
• D)Total monthly household expenses/liquid assets.
• E)None of the above.

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Definitions:

Currency Exposure

Refers to the risk of loss from fluctuations in exchange rates that can affect an investor's or company's investments, assets, and liabilities.

ADRs

American Depositary Receipts, a way for investors to own shares in a foreign company through U.S. securities exchanges.

WEBS

Exchange-traded funds (ETFs) that specifically track the performance of non-U.S. markets, commonly known as World Equity Benchmark Shares.

American Depository Receipts

Certificates issued by U.S. banks representing a specified number of shares in a foreign company's stock, traded on U.S. financial markets.