Why might a firm use the quick ratio instead of the current ratio in its liquidity analysis?

a. It wants to target long-term debt instead of short term debt.
b. Its accounts receivable are greater than its cash.
c. Its inventory is not very liquid.
d. It considers the cash flow amount in the quick ratio more important than the other liquidity ratios.
e. Its notes receivable are greater than its cash.


C

Business

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Suppose your bank lowers its minimum balance requirement by $500. So you take $500 out of your checking account and put it into a money market deposit account. What is the overall effect on M1 and M2?

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Business

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Business

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Business