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      Question

      Which of the following is a useful liquidity metric for

      short-term creditors?
      A Return on equity Correct Answer Incorrect Answer
      B Current ratio and quick ratio Correct Answer Incorrect Answer
      C Earnings per share Correct Answer Incorrect Answer
      D Price/earnings ratio Correct Answer Incorrect Answer

      Solution

      Short-term creditors are primarily concerned with a company's ability to pay its short-term obligations. The Current Ratio and Quick Ratio are key indicators of short-term liquidity.

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