ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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how quickly and easily an asset can be converted into cash
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the amount of savings available
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a measurement of how much a person or household owns once all debts have been paid
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the amount of money needed to pay for the necessities and comforts currently enjoyed
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Detailed explanation-1: -Kylee’s personal finance class has been discussing the importance of understanding liquidity and she is trying to explain the term to another student.
Detailed explanation-2: -What two factors are considered in managing liquidity? deciding how much money to retain in liquid form and how much to invest. What factors are considered in managing financing? the size of the loan you can afford to borrow.
Detailed explanation-3: -Which of the following best explains why students should learn about personal finance? Learning to manage money at this stage can eliminate financial mistakes and promote huge financial benefits for the future.
Detailed explanation-4: -Money management deals with deciding how much money to retain in a liquid form and how to allocate the funds among short-term investment instruments. Credit management deals with decisions about how much credit you need to support your spending and which sources of credit to use.