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pashok25 [27]
3 years ago
10

Consider the relative liquidity of the following assets: Assets

Business
1 answer:
Marrrta [24]3 years ago
3 0

Answer:

4. Your house - MONEY IS THE MOST LIQUID ASSET THAT CAN EXIST

2. The funds in a savings account  - MOST SAVINGS ACCOUNTS ALLOW THEIR CLIENTS A CERTAIN NUMBER OF WITHDRAWALS OR ELECTRONIC TRANSFERS PER MONTH, SO MONEY AT A SAVINGS ACCOUNT IS ALSO VERY LIQUID.

1. A bond issued by a publicly traded company - THE COMPLETE PROCESS OF SELLING A BOND MAY TAKE FROM ONE FULL DAY TO A FEW DAYS, SINCE FIRST YOUR TRADER MUST SELL THE BOND AND THEN THEY MUST TRANSFER THE MONEY TO YOUR ACCOUNT. STILL BONDS ARE LIQUID ASSETS.

4. Your house - SELLING A HOUSE IS A LONG PROCESS THAT CAN TAKE A FEW DAYS (AT BEST) TO SEVERAL MONTHS, SO A HOUSE IS NOT A VERY LIQUID ASSET.  

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the price of bonds will tend to

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