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A Firm Has a Current Ratio of 1

Question 81

Multiple Choice

A firm has a current ratio of 1.To increase that ratio the firm might ________.


A) develop a better inventory management system so the firm doesn't have to hold as many items in inventory at one time
B) hold lower cash balances at the bank and increase holdings of interest-earning marketable securities
C) take out a long-term bank loan and simultaneously offer customers better credit terms,allowing them to pay their bills more slowly
D) issue bonds and use the proceeds to purchase new equipment

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