ch 3 lo 5

Ch. 3 - LO 5 1 Which statement is true? Point A The Debt-to-Asset Ratio only rises as one moves through all 6 life stages. The Liquidity Ratio tells you how many months of living expenses you can cover with your liquid assets and the ratio should fall between 3 and 6. Having a Current Ratio of 1 means that you do not have sufficient liquid assets to cover your upcoming payments. A high Savings Ratio indicates a high Debt-to-Asset Ratio