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Which of the following ratios indicates that liquid assets are available to pay current liabilities for a household?

A) Debt-to-Income Ratio
B) Savings Ratio
C) Current Ratio
D) Net Worth Ratio

User Mjdth
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Final answer:

The Current Ratio is the financial metric that indicates if a household has enough liquid assets to cover its current liabilities.

Step-by-step explanation:

The ratio that indicates that liquid assets are available to pay current liabilities for a household is the Current Ratio. This ratio is calculated by dividing a household's current assets by its current liabilities. It provides a measure of liquidity; a higher current ratio suggests that the household has more liquid assets available to cover short-term financial obligations. Debt-to-Income Ratio measures the percentage of a household's income that goes towards paying debts, Savings Ratio looks at the proportion of income saved, and the Net Worth Ratio compares total assets to total liabilities to determine a household's overall financial health.

User Vettis
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