You can use the liquidity ratio to determine the number of months that you could continue to meet your expenses using only your monetary assets should all income cease.

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The liquidity ratio, also known as the acid-test ratio or quick ratio, measures a company's ability to pay off its short-term liabilities using only its most liquid assets, such as cash and marketable securities. However, this ratio can also be used by individuals to determine how many months they could cover their expenses using only their monetary assets, making the statement true.

You Can Use the Liquidity Ratio to Determine the Number