ECON BEHAVIOURAL & PERSONAL FINANCE Flashcards

1
Q

What is the liquidity ratio formula?

A

(Liquid assets / Current debt) x 100

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2
Q

Debt service ratio

A

(Monthly debt commitments / Monthly gross income) x 100

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3
Q

Savings ratio

A

(Savings / Total income) x 100

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4
Q

Solvency ratio

A

(Net worth / Total assets) x 100

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5
Q
A
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