Banking · Credit Management
A bank is reviewing a credit limit for a trader. If the Current Assets are 5,00,00,000 and the Current Liabilities are 4,00,00,000, what is the Current Ratio, and is it generally acceptable according to the standard Tandon Committee Second Method of Lending norms?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 11.50; Yes, it is very strong.
- 20.80; No, it should be above 1.00.
- 31.25; Yes, it is acceptable for all sectors.
- 41.25; No, it should be at least 1.33.✓
Correct answer
1.25; No, it should be at least 1.33.
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