ECONOMICS (CBSE/UGC NET)

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: -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.

Detailed explanation-3: -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-4: -Cash is universally considered the most liquid asset because it can most quickly and easily be converted into other assets. Tangible assets, such as real estate, fine art, and collectibles, are all relatively illiquid.

Detailed explanation-5: -Liquid assets are the most basic type of asset, used by consumers and businesses alike. Cash on hand is considered a liquid asset due to its ability to be readily accessed. Cash is legal tender that a company can use to settle its current liabilities.