Liquidity

Liquidity Management: A Self Study Guide prefatory course Lesson 3: Measuring Liquidity on the equaliser Sheet Learning Objectives At the end of this lesson you should: be open to define and compute the most common liquid state ratios. project the advantages and limitations of fluidity measurement based on ratios. take a shit a sense of the typical value range of certain liquidity ratios in a micro-finance founding. be able to identify a set of liquidity ratios that might be appropriate for your institution to track. Pre-Test (Solutions be at the end of the lesson) P1 Below is a angle of inclination of ratios used to analyze MFI operations. Identify the ratios that measure liquidity. a) b) c) d) e) Loan waiver Provision Ratio Net Financial Margin hard gold Position Indicator Donations and Grant Ratio Cash have Ratio Choose: A) c) B) b) and e) C) c) and e) D) a), b), c) and e) P2 The current ratio is a common liquidity ratio used by commercial banks. A) True P3 B) False Which of the pursual statements about ratios if false? A) B) C) D) Ratios Ratios Ratios Ratios are easy to compute and principally have limited data requirements. allow meaningful comparisons across different MFIs. give clear indications about future developments. are often used by external analysts.

P4 Short edge loans represent liquid assets and should therefore be included in the calculation of liquidity ratios. A) True B) False GTZ 1 Liquidity Management: sanctioned course Lesson 3 3.1 Introduction to Liquidity Ratios Use of Balance Sheet Ratios We already mentioned that only a detailed plan of future cash flows can give the necessary assurance that a fiscal institution will be able to meet its hire obligations, not just on average, but every day. Nevertheless, nonoperational balance sheet measures, usually expressed as a ratio or quotient between certain assets and liabilities, can have many useful applications for a MFI. Many banks use ratios in addition to detailed cash... If you want to get a mount essay, order it on our website: Ordercustompaper.com

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