Quick Answer: Which Asset Is The Most Liquid Quizlet?

Which financial statement is last prepared?

statement of cash flowsThe statement of cash flows must be prepared last because it takes information from all three previously prepared financial statements..

Which investment is most likely to be liquid?

Cash is the most liquid asset since you don’t need to sell it or convert it — It’s already cash. Marketable securities such as stocks and bonds are usually very liquid. You can typically turn them into cash within a few days, depending on the size of the investment.

Which of the following assets is the least liquid quizlet?

Money is the least liquid asset.

Is your house a liquid asset?

In personal finance, assets like homes and land are illiquid, or non-liquid assets. It can take months, if not longer, to sell a home at a reasonable price. And if you need to sell real estate very quickly, it can result in a loss.

Which of the following is the most liquid asset to a commercial bank?

While loans are usually thought to be less liquid than securities, Federal funds—one-day loans to other banks—are probably the most liquid asset banks can hold next to cash.

What is the opportunity cost of an investment quizlet?

For a safe capital investment, the opportunity cost is the interest rate on safe debt securities, such as high-grade corporate bonds. For riskier capital investments, the opportunity cost is the expected rate of return on risky securities—investments in the stock market, for example.

Which asset is the most liquid?

CashCash 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. There are many sources of accessible, flexible capital.

Is Fd a liquid asset?

Fixed Deposits can be *withdrawn* anytime..you may not get the promised interest amount but you can break it any time….and are considered as liquid assets..

Is gold a liquid asset?

Liquid assets are those that can easily be converted to cold cash in your pocket without losing substantial value in the conversion. Bank-related investments like CDs and money market accounts are the most liquid assets. … Silver and gold are very liquid assets. They can be sold for cash on the spot.

How much should I have in liquid assets?

Most financial experts end up suggesting you need a cash stash equal to six months of expenses: If you need $5,000 to survive every month, save $30,000. Personal finance guru Suze Orman advises an eight-month emergency fund because that’s about how long it takes the average person to find a job.

Which of the following assets is the most liquid group of answer choices checking deposits art houses?

Thus the currency and checkable deposits are the most liquid assets. After that the savings deposits comes in the list because it can be converted in cash very easily. Next comes is the common stock as they can be converted into cash in 2 to 3 days.

Which of the following assets is not included in m1?

M1 is a narrow measure of the money supply that includes physical currency, demand deposits, traveler’s checks, and other checkable deposits. M1 does not include financial assets, such as savings accounts and bonds.

How do you maintain liquid assets?

When it comes to storing liquid assets, here are a few of the most common places people choose to keep their cash:Their house (hopefully well hidden and safe)A savings or checking account at their local bank or credit union.A money market account.Short-term certificates of deposit.More items…

Is a vehicle a liquid asset?

A liquid asset is either available cash or an instrument that has the capacity to be easily converted to cash. … Liquid assets differ from non-liquid assets, such as property, vehicles or jewelry, which can take longer to sell and therefore convert to cash, and may lose value in the sale.

What are liquid assets for a bank?

Liquid assets are cash and assets that can be converted to cash quickly if needed to meet financial obligations. Examples of liquid assets generally include central bank reserves and government bonds.

Which asset is most liquid quizlet?

Cash is the most liquid of all assets.

Which asset is the least liquid?

MoneyMoney is the least liquid asset.

Which of the following is considered an act of investing in a physical asset?

Which of the following is considered an act of investing in a physical asset? spending.