Which of the Following Is/are True

question 95

Multiple Choice

Which of the following is/are true?

• A)The more long-term debt in a firm's capital structure, the less the risk that the firm will experience difficulty making the required payments when due.
• B)The more long-term debt in a firm's capital structure, the less is the risk of default or bankruptcy.
• C)Financial analysts use the long-term debt ratio to assess risk related to long-term borrowing.
• D)The debt-equity ratio relates short-term debt to shareholders' equity, indicating the relative mix of short-term financing obtained from lenders versus owners.
• E)none of the above

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Definitions:

Federal Reserve

The central banking system of the United States, responsible for implementing monetary policy, supervising banks, and providing financial services.

Large-Denomination Time Deposits

High-value deposits made in a bank or financial institution with a fixed term and interest rate, typically not accessible before maturity without penalty.

Money Market Deposit Accounts

Interest-bearing accounts offered by banks with typically higher interest rates than savings accounts, with certain restrictions.

Narrow Definition

The narrow definition refers to a specified or limited interpretation of a term, focusing on a specific aspect or characteristic, excluding broader contexts or meanings.