ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Stocks
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Savings Bonds
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Checking Account
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Certificate of Deposit (CD)
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Detailed explanation-1: -Cash in hand is considered the most liquid asset in accounting.
Detailed explanation-2: -Cash on hand is the most liquid type of asset, followed by funds you can withdraw from your bank accounts. No conversion is necessary-if your business needs a cash infusion, you can access your funds right away.
Detailed explanation-3: -A liquid asset is either the cash in your wallet or something you own that can quickly and easily convert to cash without losing significant value in the process. Checking accounts, stocks and bonds are great examples of liquid assets because they have clear monetary value and don’t take long to cash in.
Detailed explanation-4: -Liquid asset refers to the assets which are either in the form of cash or can easily be converted in to cash. Since currency of any country is already in the form of cash. Therefore, currency is considered the most liquid asset among all the assets in the economy.
Detailed explanation-5: -Answer and Explanation: Explanation: Cash is the most liquid asset as it can be used to pay liabilities immediately.