Prelims 2020 • Paper 1 (GS) • Q.62

Prelims 2020Paper 1 (GS) • Q.62
PrelimsPaper 1 (GS)2020 • Q.62
Indian Economy

What is the importance of the term "Interest Coverage Ratio" of a firm in India?

1
It helps in understanding the present risk of a firm that a bank is going to give loan to.
2
It helps in evaluating the emerging risk of a firm that a bank is going to give loan to.
3
The higher a borrowing firm's level of Interest Coverage Ratio, the worse is its ability to service its debt.
2020 PrelimsPaper 1 (GS)

Syllabus Connection

Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment. (GS-III)

NCERT Connection

Ch.3: Money and Banking

Economics • Class 12Class 12 Macroeconomics

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