ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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cash
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travelers’ checks
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a certificate of deposit
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a checking account
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Detailed explanation-1: -Traveler’s Check is not a liquid asset, because it is used by the tourists as a replacement for cash.
Detailed explanation-2: -The most common examples of non-liquid assets are equipment, real estate, vehicles, art, and collectibles. Ownership in non-publicly traded businesses could also be considered non-liquid. With these kinds of assets, the time to cash conversion is difficult to predict.
Detailed explanation-3: -M1 is a narrow measure of the money supply that includes currency, demand deposits, and other liquid deposits, including savings deposits. M1 does not include financial assets, such as bonds.
Detailed explanation-4: -A few examples of liquid assets are: Cash in checking, savings, and money market accounts. Certificates of deposit (A CD may be liquid, depending on its terms and charges.)
Detailed explanation-5: -Liquid assets are assets that are easily and simply converted to cash. Examples of liquid assets include cash, bonds, and CDs. Assets that lack liquidity require time or effort to trade or sell, like real estate or collectibles.