BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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While you are making monthly payments on time
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Converting an asset into cash
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When cash is used for emergencies
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When it is fully paid off and can be sold for cash
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Detailed explanation-1: -An asset is anything of value or a resource of value that can be converted into cash. Individuals, companies, and governments own assets. For a company, an asset might generate revenue, or a company might benefit in some way from owning or using the asset.
Detailed explanation-2: -An asset is anything you own that adds financial value, as opposed to a liability, which is money you owe. Examples of personal assets include: Your home. Other property, such as a rental house or commercial property.
Detailed explanation-3: -Cash equivalents are highly liquid investment securities that can be converted to cash easily and are found on a company’s balance sheet. Liquidity refers to the ease with which an asset, or security, can be converted into ready cash without affecting its market price.
Detailed explanation-4: -An asset is anything you own that has value attached to it. This can include physical things such as jewelry or real estate, as well as non-physical assets-like stocks, money in a savings account or intellectual property. If it holds value and could be used to offset your liabilities, it’s an asset.
Detailed explanation-5: -Liquidation is the process of selling off assets and using the proceeds to pay off creditors and shareholders. It is triggered when a company is insolvent and is unable to pay its debts. Liquidation can also be voluntary, when the company decides to go out of business and liquidate its assets.