CASH RATIO Definition

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CASH RATIO is a refinement to the QUICK RATIO. It is the ratio of cash and marketable securities to current liabilities. The CASH RATIO indicates the extent to which liabilities could be liquidated immediately. Sometimes called LIQUIDITY RATIO.

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FIXED BOND pays an income stream and redemption payment at maturity that is fixed in monetary terms; however, high inflation will erode the real value of these payments.

FACTOR is the proportion of the outstanding principal balance of a mortgage or asset-backed security to its original principal balance expressed as a decimal.

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