A Manager That Uses Ratios Such as Cash and Deposits

Multiple Choice

A manager that uses ratios such as cash and deposits due from banks to total assets and U.S.government securities to total assets to measure a firm's liquidity position is using:

A) the sources and uses of funds approach.
B) the structured funds approach.
C) the liquidity indicator approach.
D) signals from the market place.
E) None of the options is correct.