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      Question

      Which of the following is a liquidity

      ratio?
      A Debt-equity ratio Correct Answer Incorrect Answer
      B Current ratio Correct Answer Incorrect Answer
      C Inventory turnover ratio (operational) — but primarily current ratio is classic liquidity ratio Correct Answer Incorrect Answer
      D Both B and C Correct Answer Incorrect Answer
      E Price/Earnings ratio Correct Answer Incorrect Answer

      Solution

      Liquidity ratios include current and quick; inventory turnover is an efficiency/operational metric related to liquidity too.

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