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:
A1 and 2 only
B2 only
C1 and 3 only
D1, 2 and 3
Answer & Solution
Correct answer: A. 1 and 2 only
UPSC CSE Prelims 2020 (GS-I, Set A), Q.62. Official answer key: A.
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