What defines an asset as 'liquid'?

Understanding Liquid Assets

Interactive Video
•
Business
•
9th - 12th Grade
•
Hard

Aiden Montgomery
FREE Resource
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6 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
It can be converted into cash within a year.
It can be converted into cash within a few days.
It can be converted into cash within a few months.
It can be converted into cash within a week.
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following is considered the most liquid asset?
Real estate
Stocks
Bonds
Banknotes and coins
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Why do liquid assets maintain their price?
They are government-regulated.
They are rare and unique.
They are not affected by market changes.
They have a high demand and many buyers.
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is a potential issue for a company with a high proportion of illiquid assets?
It will have too many buyers for its assets.
It may face difficulties in paying bills on time.
It will have a stable cash flow.
It will have too much cash on hand.
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What does it mean when a company is described as 'very liquid'?
It has a lot of debts.
It has a lot of investments.
It has a lot of cash.
It has a lot of illiquid assets.
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How does the term 'liquid' extend beyond just cash in a business context?
It refers to the company's cash-rich status.
It refers to the company's cash flow problems.
It refers to the company's debt levels.
It refers to the company's ability to invest.
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