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American_Bankers_Association

CTFA · Question #13

Total liquid assets divided by total current debts; measures the ability to pay current debts. It is:

The correct answer is B. Liquidity ratio. See the full explanation below for the reasoning.

Fiduciary and Trust Activities

Question

Total liquid assets divided by total current debts; measures the ability to pay current debts. It is:

Options

  • ASolvency ratio
  • BLiquidity ratio
  • CSavings ratio
  • DDebt service ratio

How the community answered

(40 responses)
  • A
    3% (1)
  • B
    85% (34)
  • C
    8% (3)
  • D
    5% (2)

Topics

#liquidity ratio#financial ratios#current debts#liquid assets

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