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2. (3 points) What is the normal value of quick ratio: a. ? 0,5; b. ? 1; c. ? 2;

ID: 2619425 • Letter: 2

Question

2.  (3 points)  What is the normal value of quick ratio:

a.    ? 0,5;         b.   ? 1;         c.   ? 2;      d.  ?0,3.

3.  (3 points)  The ability of the company to extinguish its liabilities is:

a.   liquidity;  b. legitimacy;  c. profitability;   d. solvency.

4.  (3 points)  Mark the correct statements. The financial market unites:

a.   the monetary market;

b.   the market of capital;

c.   the transactions with securities of any term;

d.   the transactions with long-term securities.

Problems:

(5 points) The economy monetization ratio for the year 2011 is 32.1. Find the money velocity rate.

(5 points) The Gross Domestic Product increased by 3.2%, while the economy production output increased by 2.5%. Calculate the GDP Deflator Index.

(15 points)

Commodity groups

Price indexes

Turnover, mln.rub

previous year

current year

A

1.2

150

170

B

1.15

130

150

C

1.07

240

220

Calculatethe price indexes, using different methods. Drawconclusions.

Commodity groups

Price indexes

Turnover, mln.rub

previous year

current year

A

1.2

150

170

B

1.15

130

150

C

1.07

240

220

Explanation / Answer

The formula for Quick Ratio is : (Current Assets-Inventory)/Current Liabilities

Usually, it should be greater than 1.(However varies from firm to firm)

2) D, Solvency: can be answered as solvency in finance means paying its own liabilities.

3) All the 4 options are correct, Financial markets have a money market(Shorterm less than 1 year), Capital market, has transactions of securities of any term and with long-term securities such as bonds.

4) The content provided is insufficient to answer the question, however formula for money velocity rate is

MV=PY

where, M=money supply, V= Velocity, P is the price level and Y=real GDP.

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