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Dave has a liquidity ratio of 9 months and current ratio of 5. Why is this not ideal? a) Dave should maintain his liquidity in

Dave has a liquidity ratio of 9 months and current ratio of 5. Why is this not ideal?

a) Dave should maintain his liquidity in the form of a line of credit.

b) Dave has not been able to establish the minimum emergency fund.

c) Dave has insufficient liquidity to meet unexpected expenses.

d) Dave has excess liquidity and is likely earning a low return.

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