All categories

2 years ago

Which is the most liquid form of money?

Business

2 answers:

dalvyx [7]2 years ago

8 0

The answer is A - I just took the test!

UkoKoshka [18]2 years ago

3 0

Option (a) is correct. The cash and currency in circulation is the most liquid form of money.

Further Explanation:

Liquidity:

The liquidity refers to an asset’s ability to convert it into cash. When the asset can be converted into cash quickly, it will be considered as a highly liquid asset. When the asset cannot be converted into cash quickly, it will be considered as a low liquid asset. The liquidity is an essential factor in the business as it states the efficiency of the company to pay its short-term obligations.

Justification for the correct and incorrect option:

Cash and currency in circulation: This is the correct option because the cash and currency are the hard cash and considered as the most liquid asset.

Investment accounts: This is an incorrect option because the investment can not be converted into cash faster than the cash and currency in circulation.

Saving account: This is an incorrect option. The savings account is highly liquid, but there are restrictions on the per day withdrawal limit.

Demand accounts: This is an incorrect option because cash is the highest form of liquidity.

Thus, option (a) is correct. The cash and currency in circulation is the most liquid form of money.

Learn More:

1. Learn more about the competitive market

brainly.com/question/11042749

2. Learn more about the interest rate

brainly.com/question/8589744

3. Learn more about the investment

brainly.com/question/2396327

Answer Details:

Grade: Middle school

Chapter: Liquidity

Subject: Business studies

Keywords: most, liquid, form, money, cash, currency, circulation, investment, accounts, savings, accounts, demand, accounts.

You might be interested in

Which of the following is an example of institutional advertising?

timofeeve [1]

Answer:

Explanation:

Institutional advertising is when your trying to promote a company and not just a product. In example A it is promoting a hand cream. In example C it is promoting a grass seed. and in example D is is promoting the model with more power. Although in example B it gives out the key word Our products meaning that it is talking about the company's products/ company. Thus based on the definition it is B.

6 0

2 years ago

Read 2 more answers

A(n) ____ is the transfer of the control of operations and management from one firm to another with the former becoming a unit o

olya-2409 [2.1K]

Answer:

acquisition

Merger

Explanation:

Acquisition is when a company purchases almost all the shares of another company in order to have full control over it. For companies that are distressed or are not able to operate as a going concern, such can put up the company for sale.

In acquisition, the buying company oftentimes retain its name which is already a brand , work and build on the strength of the old company in order to achieve returns. Companies acquire other companies in order to have large market shares and also to diversify their business operation.

One of the benefit of acquisition is that it gives room for fresh ideas due to coming together of different people and also brings people that are experts in their various fields.

Merger is when two or more firms comes together to form a single entity.

Companies or firm merge in order to form an alliance and also send strong signals to other competitors.

Firms also merge in order to increase their financial capacity. This will enable them to be able to finance their business operations. They are also able to increase their asset base as a result of the merger.

4 0

2 years ago

Provide some examples of items that would be adjusted directly against equity, rather than being included as part of profit or l

Hunter-Best [27]

Answer:

1.Common Stocks Issues and Repurchases

2.Preference Stocks Issues and Repurchases

3.Dividends Declared

Explanation:

Common Stocks Issues and Repurchases

Common Stockholders have voting rights. The movement in the Stocks must be presented separately in the Statement of Changes in Equity.

Preference Stocks Issues and Repurchases

Preference Stockholders do not have voting rights. The movement in the Stocks must be presented separately in the Statement of Changes in Equity.

Dividends Declared

Dividends Paid are not included in Profit and Loss but in Statement of Changes in Equity.

Payment of Dividends adjusts the Retained Earnings Amount in Statement of Changes in Equity.

5 0

2 years ago

Redwood Corporation is considering two alternative investment proposals with the following data: Proposal X Proposal Y Investme

Nady [450]

Answer:

6.1%

Explanation:

As per given data

Proposal X Proposal Y

Investment $900,000 $488,000

Useful life 9 years 9 years

Annual net cash inflows for 9 years $130,000 $84,000

Residual value $42,000 $0

Depreciation method Straight-line Straight-line

Required rate of return 15% 12%

Accounting rate of return is the ratio of average net income of a project and the average investment made in the project.

Accounting rate of return = Average Net income / Average Investment

As net cash inflows are given we need to deduct the depreciation from the cash flows to arrive at the net income for the period. As all cash flows are constant so, the average value will be equal to the single years value.

Average net income = Net cash inflows - Depreciation = Net cash inflows - ( Cost of Asset - Residual value ) / Useful life of asset = $84,000 - ( $488,000 - $0) / 9 = $84,000 - $54,222 = $29,778

Average Investment = $488,000

Placing Values in the formula

Accounting rate of return = $29,778 / $488,000 = 6.1%

5 0

3 years ago

Robert, the president of the labor union of a company, speaks to the management of the company about the requirement for an extr

vodomira [7]

Answer:

Taft-Hartley Act

Explanation:

Taft-Hartley Act is also known as the labour management relations act of 1947 and it restricts the activities and powers of labour unions. It stops unions for engaging in unfair labour practices such as jurisdictional strike, wild strike, political strike, secondary boycotts, and monetary donations to political campaigns.

Robert has violated the Taft-Hartley act by creating a fictional role in the company in order to get his cousin a job.

8 0

3 years ago