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: -Liquidity describes your ability to exchange an asset for cash. The easier it is to convert an asset into cash, the more liquid it is. And cash is generally considered the most liquid asset.

Detailed explanation-3: -Liquidity refers to the ease with which an asset, or security, can be converted into ready cash without affecting its market price. Cash is the most liquid of assets, while tangible items are less liquid. The two main types of liquidity include market liquidity and accounting liquidity.

Detailed explanation-4: -Liquidity reflects a financial institution’s ability to fund assets and meet financial obligations. Liquidity is essential in all banks to meet customer withdrawals, compensate for balance sheet fluctuations, and provide funds for growth.

Detailed explanation-5: -Stocks and marketable securities, which are considered liquid assets because these assets can be converted to cash in a relatively short period of time in the event of a financial emergency. U.S. Treasuries and bonds. More items