Which of the Following Is a Measure of Profitability

question 13

Multiple Choice

Which of the following is a measure of profitability?

• A)Inventory turnover rate.
• B)Quick ratio.
• C)Interest coverage ratio.
• D)Return on assets.

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Definitions:

Open Market Operations

The buying and selling of government securities by a central bank in order to control the money supply and interest rates in the economy.

Discount Rate

The interest rate charged to commercial banks and other financial institutions for loans received from the Federal Reserve's discount window.

Expansionary Monetary Policy

A form of monetary policy that aims to increase the money supply and lower interest rates to stimulate economic growth.

Net Exports

The value of a country’s total exports minus its total imports, which can indicate the country’s economic strength in international trade.