n NISM Certifications
XV NISM Series XV
Medium

Total liabilities = ₹12,000, total assets = ₹16,000. Calculate the Asset to Equity ratio.

Practice question from NISM XV Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    2.44

  2. 4

    Correct answer

  3. C

    1.33

  4. D

    0.75

Why this is the answer

Equity = Assets − Liabilities = 16,000 − 12,000 = 4,000. Asset to Equity Ratio = 16,000 ÷ 4,000 = 4.

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