n NISM Certifications
XV NISM Series XV
Medium

__________ measures a company’s ability to meet short-term obligations.

Practice question from NISM XV Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Current Ratio

    Correct answer

  2. B

    High Return on Equity (ROE)

  3. C

    High Return on Capital Employed (ROCE)

  4. D

    Inventory Turnover Ratio

Why this is the answer

Current Ratio = Current Assets ÷ Current Liabilities. It reflects liquidity and the ability to meet short-term debts.

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