Which of the following is true of liquidity?
a. Liquidity metrics include assets turnover, price-earnings ratio, and dividend yield.
b. Liquidity is the ability to convert assets to cash.
c. Liquidity is the ability of a company to generate net income related to its invested assets.
d. Liquidity metrics include debt ratio, times interest earned, and ratio of liabilities to stockholders' equity.
Answer: b. Liquidity is the ability to convert assets to cash.
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Use the following graph to answer the next question.
Which line in the graph above would best illustrate the asset demand for money curve?
A. Line 1 B. Line 2 C. Line 3 D. Line 4
What does it mean if an industry has external economies?
What will be an ideal response?
Suppose the U.S. can produce 10 units of food and five units of clothing (or any such linear combination) and Canada can produce six units of food and four units of clothing (or any such linear combination)
If trade occurs between these two countries, which should produce more food and which more clothing?
Which of the following topics would be covered in microeconomics? a. The effects of an increase in the supply of lumber on the homebuilding industry. b. The unemployment rate
c. The effects of interest rates on the overall economy. d. The inflation rate.