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"Inventory is not included in quick assets while calculating the quick ratio. But inventory is included in the numerator while calculating the current ratio. So, an increase in the numerator for Firm X because of greater inventory makes its current ratio more than Firm Y. Accounts payable are included in current liability, and it’s the same in the case of quick ratio and current ratio. We do not have full information about turnover ratios so can not comment on that. Therefore, greater inventory for Firm X will result in a higher current ratio"
The Reserve Bank has released a booklet that aims to enhance public awareness about various types of financial frauds perpetrated on gullible customers...
Which of the following Statements is/are True?
I- PCA is a framework under which banks with weak financial metrics are put under watch by the RBI...
……………………………………………. allows the RBI to absorb liquidity (deposit) from commercial banks without giving government secur...
The Reserve Bank of India, recently has proposed to hike UPI (Unified Payment Interface) transaction limit for investing in IPO to…
Which of the following banks continue to be identified by Reserve Bank of India as Domestic-Systemically important Banks
A rate at which RBI (Reserve Bank of India) lends to commercial banks by purchasing securities:
Which among the following is a numerical measurement that is used to predict the chances of a business going bankrupt in the next two years.
The Basel III norms have prescribed a Leverage ratio of a) ___% while the Reserve Bank of India has prescribed a leverage ratio of b)___% for D-SIBs and...
The current expected risk-free rate is 4%, the equity premium is 3.9% and the beta is 0.8. calculate the return on equity.
The Reserve Bank has released a booklet that aims to enhance public awareness about various types of financial frauds perpetrated on gullible customers...