n NISM Certifications
XXI NISM Series XXI-A
Medium

The "Current Ratio" is calculated as:

Practice question from NISM XXI A for PMS - Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Current Assets / Current Liabilities

    Correct answer

  2. B

    Total Assets / Total Liabilities

  3. C

    Earnings / Shareholders’ Equity

  4. D

    Operating Income / Interest Expenses

Why this is the answer

It measures liquidity.

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