Answer:D) An asset that can easily be converted into cash Explanation: A liquid asset is a resource that can undoubtedly be changed over into cash in a short measure of time. Fluid resources incorporate things like money, currency market instruments, and attractive protections. The two people ...
The most common liquid assets are: Cash: This is the most liquid asset, and it’s the basis for determining the liquidity of all assets. Money market funds: These managed funds only invest in cash, cash equivalents, and short-term debt securities that are easy to sell on the market. ...
The administrative and physical difficulty of exchanging otherwise liquid assets, meaning any unavoidable delay in the transaction or high costs, also makes for a non-liquid market. Real estate is a good example: no matter how “hot” the market may be, the number of legal and financing hoops...
In the world of markets, Forex is the most liquid asset globally because of the high volume and frequency with which it is traded. There are usually very narrow bid-offer spreads for hard currencies such as US Dollar/Yen, British Pound/US Dollar, euro/British pound, euro/US dollar, and ...
Liquidity is a term used in the financial world to refer to how easilyan asset can be bought or sold. Liquidity crises occur when the markets for various assets freeze up, making it hard for businesses to sell their stocks and bonds. In such a scenario, the demand for liquidity incre...
First things first, let’s take a look at what liquidity in finances represents. What Is Liquidity? How Does It Impact Financial Markets? The ease with which an asset may be exchanged for another asset (usually for cash) is known as liquidity. Cash is the most liquid asset since it can...
Liquid fund is an asset that can easily be converted into cash in a small amount of time. Liquid assets or funds include things like money market instruments, cash, and marketable securities. Liquid funds are debts that invest in securities with a residual maturity of up to 91 days. ...
What is the definition of liquid asset?Assets are often judged based on their liquidity. You can think of this as a scale of how close the asset is to cash. Cash, itself, is the most liquid of all assets because it’s cash :). Other assets likecash equivalentsare extremely liquid. U...
A liquid asset is cash on hand or an asset that can be easily converted to cash. In terms of liquidity, cash is supreme, since cash aslegal tenderis the ultimate goal. Assets that can be converted to cash quickly are similar to cash itself, and are thus also liquid. Liquid assets are...
When the most precise tangible asset value is needed, a company often hires an external, independentappraiser. The appraiser is often an expert in a given field (i.e. an expert in a specific type of collectible or an expert in real estate). The appraiser evaluates the condition of the tan...