Because the balance of payments is always balanced and the financial account and current account make up a high proportion of the balance of payments The best way to study. Sign up for free. By signing up, you accept Quizlet's Terms of Service and Privacy Policy Continue with Google ...
require the borrower to maintain specific ratios such as liquidity and turnover ratios. Both liquidity and turnover ratios are improved by reducing liabilities and assets on the balance sheet. Covenants can also include other conditions, such as dividend payments and the required level of working ...