ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -At the time of investing, the investor must keep some of the liquid assets in his portfolio so that he can have an easy hand on his money during an emergency. Cash is a highly liquid asset followed by the banking accounts, checkable account, short-term promissory notes, treasury bills and other government bonds.

Detailed explanation-2: -Cash and Cash Equivalents 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-3: -An asset describes anything you own that holds monetary value. A liquid asset is defined as a type of asset that can quickly and easily be converted into cash while retaining its market value. Liquid assets are a particularly important safeguard to have if you experience financial hardship and need cash fast.

Detailed explanation-4: -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-5: -The best place for your emergency fund is in a liquid (easily accessible) account. A liquid account might be a regular savings account at a bank or credit union that provides some return on your deposit, and from which your funds can still be withdrawn at any time without penalty.