All of the Following Are Measures of Liquidity Except

question 155

Multiple Choice

All of the following are measures of liquidity except

• A) the quick ratio.
• B) return on assets.
• C) the current ratio.
• D) working capital.

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Definitions:

Time To Maturity

The duration remaining until the final payment date of a financial instrument, such as a bond, at which point the principal is supposed to be paid back to investors.

Yield Differential

The difference in returns between two different investments, often used to compare the potential earnings from bonds of different countries.

Recessionary Periods

Recessionary periods are times of economic decline when there is a decrease in the gross domestic product (GDP), employment, and spending for two consecutive quarters or more.

Bond Ratings

An assessment of the creditworthiness of a bond issuer, reflecting the likelihood of the bond’s credit default, ranked by grade by credit rating agencies.