nerdexam
American_Bankers_Association

CTFA · Question #14

Total net worth divided by total assets; measures the degree of exposure to insolvency is:

The correct answer is A. Solvency ratio. See the full explanation below for the reasoning.

Fiduciary and Trust Activities

Question

Total net worth divided by total assets; measures the degree of exposure to insolvency is:

Options

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

How the community answered

(33 responses)
  • A
    79% (26)
  • B
    12% (4)
  • C
    3% (1)
  • D
    6% (2)

Topics

#solvency ratio#net worth#financial ratios#insolvency risk

Community Discussion

No community discussion yet for this question.

Full CTFA Practice