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- For each measure of financial strain, we compare respondents who were financially strained in 2004 to respondents who were not financially strained in 2004. The “solvency ratio†represents the percentage of households with assets/debts<1.0. The “liquidity ratio†represents the percentage of households with liquid assets/monthly income<2.5. The “investment assets ratio†represents the percentage of households with investment assets/net worth<0.25. b
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- For each measure of financial strain, we compare respondents who were financially strained in 2004 to respondents who were not financially strained in 2004. The “solvency ratio†represents the percentage of households with assets/debts<1.0. The “liquidity ratio†represents the percentage of households with liquid assets/monthly income<2.5. The “investment assets ratio†represents the percentage of households with investment assets/net worth<0.25. b
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