| Question: As the debt ratio increases, | A. | Fewer assets are debt-financed, and the ratio of debt-to-equity increases | B. | Fewer assets are debt-financed, and the ratio of debt-to-equity decreases | C. | More assets are debt-financed, and the ratio of debt-to-equity increases | D. | More assets are debt-financed, and the ratio of debt-to-equity decreases | Answer» c. More assets are debt-financed, and the ratio of debt-to-equity increases |  
| Note: | The above multiple-choice question is for all general and Competitive Exams in India. |