Which of the Following Is the Most Desirable Quick Ratio

question 78

Multiple Choice

Which of the following is the most desirable quick ratio?

• A) 1.20
• B) 1.00
• C) 0.95
• D) 0.50

---

Definitions:

Desired Money Holdings

This is the quantity of money individuals prefer to keep available for immediate transactions or precautionary purposes.

Initial Equilibrium

The starting point at which supply and demand are in balance before any external changes affect the market.

Interest Rate

The fee, shown as a percent of the principal, that a lender imposes on a borrower for the utilization of assets.

Government Spending

Financial expenditures by the government, including investments, consumption, and transfer payments, aimed at influencing the economic activity.