n NISM Certifications
XVII NISM Series XVII
Medium

The Debt to Income ratio reflects an individual's debt situation by showing the proportion of income used for debt servicing.

Practice question from NISM Series XVII- Retirement Adviser Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Debt to Income ratio

    Correct answer

  2. B

    Interest servicing ratio

  3. C

    Current assets to Current liabilities ratio

  4. D

    Asset to Debt Ratio

Why this is the answer

DTI directly measures leverage relative to income.

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