an asset is something of value that you own or that is owed to you. If you lend money to someone, that loan is also an asset because you are due that amount. For the person who owes the money, the loan is a liability.
LIEBERMAN*VisitingWileyEconomic InquiryLieberman, C., "A Transaction vs. Assets Demand Approach to the Empirical Definition of Money," Economic Inquiry, vol. 17, April 1979, pp. 23 7-253.LIEBERMAN, C., "A Transactions vs Assets Demand Approach to the Empirical Definition of Money", Economie ...
Normally, prices are expressed in terms of money, but this is not always the case; for example, one may trade four chickens for two sheep.Asset prices tend to be regulated by the law of supply and demand; that is, the price of an asset increases with smaller supply and/or greater ...
Techopedia draws our attention to some important implications of the liquid asset definition. Liquid assets are defined by the termliquidity, which refers to a market, i.e., how easy it is to buy and sell within that market. When there’s a consistent‘demand for’ and ‘supply of’somethi...
In addition to stocks and receivables, the above definition comprises financial derivatives, bonds, money market or other account holdings, and equity stakes.Many of these financial assets do not have a set monetary value until they are converted into cash, especially in the case of stocks where...
The minimum amount of money by which the expected return on a risky asset must exceed the known return on a risk-free asset in order to induce an individual to hold the risky asset rather than the risk-free asset. From: Encyclopedia of Energy, Natural Resource, and Environmental Economics,...
3.transfer of property for money or credit. 4. a.an amount or quantity sold. b.sales,total receipts from selling. 5.opportunity to sell; demand. 6.an auction. 7.sales,a department or division, as in a business, concerned with selling and promoting goods, services, etc. ...
1 However, investors cannot receive a good return on their investments at these rates, so they move their money into higher-yield, higher-risk asset classes, spiking asset prices.2 Demand-pull inflation: This occurs when buyers' demand for an asset exceeds the available supply. The sellers ...
Examples of Liquid Assets Cash Cash equivalents (checking account, savings account, money market account) Marketable securities(stocks, government bonds) Balance Sheet Treatment Similar to other assets, liquid assets are reported on thebalance sheetof a company. Assets are listed on the balance sheet...
asset coverage ratio generally indicates that the company has more than enough assets to cover its debt, making it less risky to lenders; a lower ratio suggests that it may face difficulty paying its debt. Banks and creditors often consider a minimum asset coverage ratio before lending money. ...