BANKING AFFAIRS

Detailed explanation-1: -Cash is the most liquid asset possible as it is already in the form of money. This includes physical cash, savings account balances, and checking account balances.

Detailed explanation-2: -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the money in your checking account, savings account, or money market account is considered liquid because it can be withdrawn easily to settle liabilities.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-3: -Checking accounts: Because checking accounts generally don’t limit the number of withdrawals you can make and allow check writing, online bill pay and debit cards, this is the most liquid of all deposit accounts.

Detailed explanation-4: -Cash is the most liquid asset followed by cash equivalents, which are things like money markets, CDs, or time deposits. Marketable securities such as stocks and bonds listed on exchanges are often very liquid and can be sold quickly via a broker.

Detailed explanation-5: -Cash and Cash Equivalents Cash is considered the most liquid asset because it’s readily available to use. Cash can be paper money, coins, or checking or savings account balances.