ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Its value changes all the time.
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You need extra time to get your money.
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It’s cash or easy to turn into cash.
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It’s easy to figure out its value.
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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: -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-3: -Liquid assets refer to cash on hand, cash on bank deposit, and assets that can be quickly and easily converted to cash. The common liquid assets are stock, bonds, certificates of deposit, or shares.
Detailed explanation-4: -Liquidity is a company’s ability to convert assets to cash or acquire cash-through a loan or money in the bank-to pay its short-term obligations or liabilities.
Detailed explanation-5: -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. Cash in a bank account or credit union account can be accessed quickly and easily, via a bank transfer or an ATM withdrawal.