Money, Banking & RBI
Economic & Social Development · PYQ 2020
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.
Select the correct answer using the code given below: