Final answer:
Liquidity ratios are the financial metrics that assess a company's capability to meet its short-term financial obligations. They include the current, quick, and cash ratios, which are critical for evaluating a firm's short-term financial health.
Step-by-step explanation:
The type of ratios that focus on the ability of a firm to meet its short-term financial obligations are B) liquidity ratios. Liquidity ratios measure a company's ability to pay off its current debts without raising external capital and include ratios like the current ratio, quick ratio (also known as the acid-test ratio), and cash ratio. These ratios are crucial for creditors and investors as they evaluate the short-term financial health of a company and its efficiency in managing working capital.