Question

If available NWC is greater than Minimum
required NWC under Second Method of
Lending, current ratio will be
Less har
Current Ratio ma be equal to 131
Current Ratio will be greater than 133 1
Current Ratio will be equal to 1 251​

Answer 1

Explanation:

NWC and Current Ratio are two topics that are somewhat difficult to grasp. However, as a credit officer, there is no escaping from these concepts. One needs to be clear on these if the appraisal is to be of good quality. Also, these are questions frequently asked by interview panels in promotion exams to judge the quality of the credit officer. With promotion season about to start shortly, many of you may be attending interviews where this question can be asked. This post explains NWC and Current Ratio in a conversation style between a candidate and interview panel. I hope this conversation style, rather than dry theory, will better help you understand these concepts.