Post Utme Rhema University 2022 Commerce Question 26

Practice objective / multiple choice question 26 from the 2022 Post Utme Rhema University Commerce examination.

Post Utme Rhema University 2022 Commerce Objective / Multiple Choice
Question 26 POST_UTME_RHEMA_UNIVERSITY • 2022 • COMMERCE • objective

A bank's liquidity ratio is a measure of its ability to meet its short-term obligations. If a bank has a liquidity ratio of 0.8, what does this imply about its ability to meet its short-term obligations?

Answer Options

Correct Answer A. The bank has sufficient liquid assets to meet its short-term obligations.
B. The bank has insufficient liquid assets to meet its short-term obligations.
C. The bank's liquidity ratio is irrelevant to its ability to meet its short-term obligations.
D. The bank's liquidity ratio is a measure of its profitability.
Correct Answer
A
Correct Option:
The bank has sufficient liquid assets to meet its short-term obligations.

About This Question

This is Post Utme Rhema University 2022 Commerce Question 26. It is one of the objective questions from the 2022 Post Utme Rhema University Commerce examination.

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