All of the following are common ratio measures of bank liquidity EXCEPT:
A) loans/deposits
B) loans/nondeposit liabilities
C) unencumbered liquid assets/nondeposit liabilities
D) fixed assets/loans

Question

Quizplus · Accepted Answer

The correct answer is D) fixed assets/loans. This is because the common ratio measures of bank liquidity typically involve comparing liquid assets to liabilities or loans to deposits or nondeposit liabilities. Fixed assets/loans ratio does not measure liquidity; instead, it relates to the proportion of a bank's loans to its fixed assets, which is more relevant to the bank's asset management and utilization rather than its liquidity position.

All of the Following Are Common Ratio Measures of Bank