Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
The most liquid asset is:*
A. A car
B. A computer
C. A house
D. Money in a checking account
E. Money in a certificate of deposit
F. Don’t know
Expert Solution
Step 1: Introduction:
An asset that is easily convertible into cash and can be done so quickly is referred to as being liquid. Money market instruments, marketable securities, and cash are examples of liquid assets. The amount of liquid assets that make up a person's net worth can be a concern for both individuals and businesses. The liquid assets of a company are shown on its balance sheet as current assets for the purposes of financial accounting.
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