In Normal Times, When the Economy Is in Neither a Recession

question 13

True/False

In normal times, when the economy is in neither a recession nor a boom, manufacturing capacity utilization is at 100 percent.

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Definitions:

Current Liability

A financial obligation that is due to be settled within one year or within the normal operating cycle, whichever is longer.

Bank Indebtedness

A financial term referring to the amount of debt a company has borrowed from banking institutions.

Highly Liquid

Assets that can be easily and quickly converted into cash without significant loss in value.

Trading Investments

Securities purchased and held primarily for selling them in the near term with the goal of generating short-term profits.