n NISM Certifications
XXI NISM Series XXI-A
Medium

Which of the following best describes "Liquidity Ratio"?

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

Options

  1. Ratio indicating a company's ability to meet short-term obligations

    Correct answer

  2. B

    Ratio indicating profitability over a period

  3. C

    Ratio indicating the company's debt levels

  4. D

    Ratio indicating the company's market share

Why this is the answer

Liquidity ratios, like the current ratio, assess short-term financial health.

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