ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Savings Account are one of the most liquid investments, so it is easy to use them when needed for conducting transactions. This means that compared to regular investments, you can easily withdraw funds from your Savings Account, anywhere, anytime.

Detailed explanation-2: -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-3: -Liquid bank accounts, including liquid savings accounts, are any account that allows you easy access to the money in the account. The term “liquid” means that you can easily withdraw the cash in the account, as opposed to many other bank assets which are not liquid (such as real estate).

Detailed explanation-4: -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-5: -The money you put into a savings account is more liquid than the money you put into investments. Investing, on the other hand, can help you work toward reaching your longer-term goals, such as retirement or a college fund for your future children or grandchildren.