A bank wants to examine whether the borrower can raise cash in a timely fashion to pay bills that are coming due.This bank would most likely examine which of the following categories of ratios?

Question

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The bank would most likely examine the customer's liquidity ratios, which measure the borrower's ability to meet short-term obligations. Liquidity ratios include current ratio, quick ratio, and cash ratio, which all indicate whether the borrower has enough cash or liquid assets to cover upcoming bills and expenses.

A Bank Wants to Examine Whether the Borrower Can Raise