n NISM Certifications
XXI NISM Series XXI-A
Medium

Which of the following is an example of a liquidity ratio?

Practice question from NISM XXI A for PMS - Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Debt-to-Equity Ratio

  2. Current Ratio

    Correct answer

  3. C

    Price-to-Earnings Ratio

  4. D

    Return on Equity

Why this is the answer

The current ratio measures a company's ability to meet short-term obligations.

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