ECONOMICS
FEDERAL RESERVE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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converted to the medium of exchange.
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exchanged because of the intrinsic value of commodity money
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transported to the bank.
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circulated throughout the economy in a given year.
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Detailed explanation-1: -A liquid asset is an asset that can easily be converted into cash in a short amount of time. Liquid assets include things like cash, money market instruments, and marketable securities. Both individuals and businesses can be concerned with tracking liquid assets as a portion of their net worth.
Detailed explanation-2: -November 30, 2022. In personal finance, liquid assets are investments an individual may easily convert to cash without incurring fiscal penalties. Most liquid investments-commonly stocks, bonds and mutual funds, among others-can be bought and sold throughout the trading day.
Detailed explanation-3: -Anything of financial value to a business or individual is considered an asset. Liquid assets, however, are the assets that can be easily, securely, and quickly exchanged for legal tender. Your inventory, accounts receivable, and stocks are examples of liquid assets-things you can quickly convert to hard cash.
Detailed explanation-4: -Current Assets are further classified as Liquid Assets and Non Liquid Assets. Liquid assets are those which can be converted in to cash immediately without loosing any value. Cash, Debtors, Bills Receivables, marketable securities are the example of liquid assets.
Detailed explanation-5: -Stock is not considered a liquid asset because converting it to cash is conditional upon finding buyers for the stock at the evaluated price. Liquid assests are cash, and cash equivalents i.e. anything that can be readily converted to cash without loss in value.