Answer:
1. A $20 bill
2. A bond issued by a publicly traded company
3. The funds in a money market account
4. Your car
Explanation:
Liquidity means that how easily an asset can be converted into cash.
1. Currency is the most liquid means of medium of exchange, so $20 bill is highly liquid asset.
2. A publicly traded bond can be converted into cash within a couple of days, so it is second most liquid asset.
3. The funds invested in the money market can be withdrawn within agreed period of time which can be in months or days so it can be at seconf or third most liquid asset.
4. A car can take more than a month to locate a customer to sell it at appropriate price so it is the least liquid asset.
46% of Americans couldn’t come up with 400$ in an emergency. 60% will face that emergency less than 12 months
Answer:
D) Small businesses foster personal relationships and offer flexibility and independence.
Explanation:
As an SBA counselor you need to motivate your friend and outline the advantages of starting a small business. The advantage that should be most emphasised is that small businesses foster personal relationships. Most business fail as start-ups because they do not buy into their clients emotions. By building a personal relationship with clients the business has high chance of success.
Also mention personal perks of flexibility and independence he will enjoy when starting a small business.
Answer:
77%
Explanation:
The formula for calculating the debt to income ratio is:
Total monthly debt/total monthly income.
Therefore, we have to calculate the total of monthly debt and monthly income first.
Monthly debt:
Mortgage payments= $3,200
Wife's car= $540
Tom's car = $395
Total = $4,135
Monthly income:
Retirement income = $2,500
Social Security income = $1,200
Rental income = $1,680
Total = $5,380
Debt to income ratio:
$4,135/$5,380
= 0.77 X 100
= 77%
