Question

Suppose that you were trying to determine how much income was available for future monetary needs as well as for investment.

You would most likely use which of the following ratios?

a. savings ratio
b. debt ratio
c. total asset turnover
d. current ratio
e. none of the above

Answer 1

A. Savings ratio

Step-by-step explanation:

The savings ratio is expressed as a percentage and is computed by dividing average household savings by average household disposable income.