Whether an asset is "liquid" often depends on what situation you are in. For each of the following pairs of assets, which is more liquid in the particular setting? A) You want to buy a sofa: A savings account or currency? B) You want to trade for a bologna sandwich in elementary school: A peanut butter and jelly sandwich or sushi? C) You want to buy a house: Currency or a checking account? D) You live in a post-apocalyptic wasteland: Rice or currency? E) You are traveling across Europe during the Middle Ages: Gold coins or works of art? F) You are an investment banker buying a corporation: U.S. Treasury bonds or currency?
Whether an asset is "liquid" often depends on what situation you are in. For each of the following pairs of assets, which is more liquid in the particular setting? A) You want to buy a sofa: A savings account or currency? B) You want to trade for a bologna sandwich in elementary school: A peanut butter and jelly sandwich or sushi? C) You want to buy a house: Currency or a checking account? D) You live in a post-apocalyptic wasteland: Rice or currency? E) You are traveling across Europe during the Middle Ages: Gold coins or works of art? F) You are an investment banker buying a corporation: U.S. Treasury bonds or currency?
Chapter10: Managing Property And Liability Risk
Section: Chapter Questions
Problem 2LTAI
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Whether an asset is "liquid" often depends on what situation you are in. For each of the following pairs of assets, which is more liquid in the particular setting?
A) You want to buy a sofa: A savings account or currency?
B) You want to trade for a bologna sandwich in elementary school: A peanut butter and jelly sandwich or sushi?
C) You want to buy a house: Currency or a checking account?
D) You live in a post-apocalyptic wasteland: Rice or currency?
E) You are traveling across Europe during the Middle Ages: Gold coins or works of art?
F) You are an investment banker buying a corporation: U.S. Treasury bonds or currency?
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