BANKING AFFAIRS

Detailed explanation-1: -Cash is legal tender that a company can use to settle its current liabilities. For example, the money in your checking account, savings account, or money market account is considered liquid because it can be withdrawn easily to settle liabilities.

Detailed explanation-2: -Cash on hand is considered the most liquid type of liquid asset since it is cash itself. Cash is legal tender that an individual or company can use to make payments on liability obligations.

Detailed explanation-3: -Cash is your most liquid asset because you don’t need to take further steps to convert it – it’s already cash. You can use it to pay for a good or service immediately and also use it to settle any outstanding debts. Cash is usually held in checking accounts, savings accounts or money market accounts.

Detailed explanation-4: -Liquidity describes your ability to exchange an asset for cash. The easier it is to convert an asset into cash, the more liquid it is. And cash is generally considered the most liquid asset. Cash in a bank account or credit union account can be accessed quickly and easily, via a bank transfer or an ATM withdrawal.