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The Best Approach to Measuring Liquidity Takes into Account Changes

Question 50

Multiple Choice

The best approach to measuring liquidity takes into account changes over time in both liquidity needs and sources. A financial ratio that does this consists of _________ in period t over _________ in period t.


A) liquid assets and liabilities; estimated liquidity needs
B) liquid assets; estimated liabilities
C) estimated reserve needs; liquid assets and liabilities
D) liabilities; estimated liquid assets

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