BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following is the least liquid asset?
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Money
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Shares
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Machinery
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Special deposits
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Explanation:
Detailed explanation-1: -The least liquid current asset is inventory. This is because sales of finished goods depend highly on customer demands. If the need for the good is low, then the inventory stock will increase and not be quickly converted into cash.
Detailed explanation-2: -Cash is considered to be the most liquid asset of all, while real assets (for example property) and private companies are typically the least liquid.
Detailed explanation-3: -Cash is the most liquid of assets, while tangible items are less liquid.
Detailed explanation-4: -Land and real estate investments are considered non-liquid assets because it can take months for a person or company to receive cash from the sale.
There is 1 question to complete.