ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Money is a savings account
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Money invested in real estate
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Money invested in a CD
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A new car
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Detailed explanation-1: -Cash is the most liquid asset possible as it is already in the form of money. This includes physical cash, savings account balances, and checking account balances.
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: -Liquid assets consist primarily of cash in a checking or savings account. If an unexpected expense comes up, the checking account balance may fall short. At that point, the person may have to dip into a savings account, pawn a gold watch, or cash in a few bond shares.
Detailed explanation-5: -Examples of liquid assets. Cash or currency: The cash you physically have on hand. Bank accounts: The money in your checking account or savings account. Accounts receivable: The money owed to your business by your customers.