Illiquid assets and rank them from most liquid to illiquid.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 13, Problem 1CQ

To determine

Illiquid assets and rank them from most liquid to illiquid.

Expert Solution & Answer

Explanation of Solution

The liquidity of an asset refers to its ease and quickness in converting itself into cash without any significant loss in value. Cash in hand, cash at bank, short-term investments, high grade bonds, and stocks are some of the examples of liquid assets.

On the other hand, illiquid assets cannot be converted easily and quickly into cash without any loss in the value. Assets such as land, houses, a family-owned business, business equipment, and artistic works are some of the examples of illiquid assts.

Economics Concept Introduction

Liquid asset: A liquid asset refers to the asset that can be converted easily and quickly into cash without any significant loss of value.

Illiquid asset: An illiquid asset refers to the asset that cannot be converted easily and quickly into cash without any loss of value.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Consider the relative liquidity of the following assets: Assets 1. Your car 2. A $20 bill 3. A bond issued by a publicly traded company 4. The funds in a money market account Select the assets in order of their liquidity, from most liquid to least liquid.

Why are companies' liquidity ratios calculated and which assets are more liquid?

If lines of credit and other off-balance-sheet activities do not, by definition, appear on the bank’s balance sheet, how can they influence the level of liquidity risk to which the bank is exposed?

Answer 2

Question

Chapter 13, Problem 1CQ

To determine

Illiquid assets and rank them from most liquid to illiquid.

Expert Solution & Answer

Explanation of Solution

The liquidity of an asset refers to its ease and quickness in converting itself into cash without any significant loss in value. Cash in hand, cash at bank, short-term investments, high grade bonds, and stocks are some of the examples of liquid assets.

On the other hand, illiquid assets cannot be converted easily and quickly into cash without any loss in the value. Assets such as land, houses, a family-owned business, business equipment, and artistic works are some of the examples of illiquid assts.

Economics Concept Introduction

Liquid asset: A liquid asset refers to the asset that can be converted easily and quickly into cash without any significant loss of value.

Illiquid asset: An illiquid asset refers to the asset that cannot be converted easily and quickly into cash without any loss of value.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 13, Problem 1CQ

To determine

Illiquid assets and rank them from most liquid to illiquid.

Expert Solution & Answer

Explanation of Solution

The liquidity of an asset refers to its ease and quickness in converting itself into cash without any significant loss in value. Cash in hand, cash at bank, short-term investments, high grade bonds, and stocks are some of the examples of liquid assets.

On the other hand, illiquid assets cannot be converted easily and quickly into cash without any loss in the value. Assets such as land, houses, a family-owned business, business equipment, and artistic works are some of the examples of illiquid assts.

Economics Concept Introduction

Liquid asset: A liquid asset refers to the asset that can be converted easily and quickly into cash without any significant loss of value.

Illiquid asset: An illiquid asset refers to the asset that cannot be converted easily and quickly into cash without any loss of value.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 13, Problem 1CQ

To determine

Illiquid assets and rank them from most liquid to illiquid.

Expert Solution & Answer

Explanation of Solution

The liquidity of an asset refers to its ease and quickness in converting itself into cash without any significant loss in value. Cash in hand, cash at bank, short-term investments, high grade bonds, and stocks are some of the examples of liquid assets.

On the other hand, illiquid assets cannot be converted easily and quickly into cash without any loss in the value. Assets such as land, houses, a family-owned business, business equipment, and artistic works are some of the examples of illiquid assts.

Economics Concept Introduction

Liquid asset: A liquid asset refers to the asset that can be converted easily and quickly into cash without any significant loss of value.

Illiquid asset: An illiquid asset refers to the asset that cannot be converted easily and quickly into cash without any loss of value.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 13, Problem 1CQ

To determine

Illiquid assets and rank them from most liquid to illiquid.

Expert Solution & Answer

Explanation of Solution

The liquidity of an asset refers to its ease and quickness in converting itself into cash without any significant loss in value. Cash in hand, cash at bank, short-term investments, high grade bonds, and stocks are some of the examples of liquid assets.

On the other hand, illiquid assets cannot be converted easily and quickly into cash without any loss in the value. Assets such as land, houses, a family-owned business, business equipment, and artistic works are some of the examples of illiquid assts.

Economics Concept Introduction

Liquid asset: A liquid asset refers to the asset that can be converted easily and quickly into cash without any significant loss of value.

Illiquid asset: An illiquid asset refers to the asset that cannot be converted easily and quickly into cash without any loss of value.

Answer 6

Chapter 13, Problem 1CQ

To determine

Illiquid assets and rank them from most liquid to illiquid.

Expert Solution & Answer

Explanation of Solution

The liquidity of an asset refers to its ease and quickness in converting itself into cash without any significant loss in value. Cash in hand, cash at bank, short-term investments, high grade bonds, and stocks are some of the examples of liquid assets.

On the other hand, illiquid assets cannot be converted easily and quickly into cash without any loss in the value. Assets such as land, houses, a family-owned business, business equipment, and artistic works are some of the examples of illiquid assts.

Economics Concept Introduction

Liquid asset: A liquid asset refers to the asset that can be converted easily and quickly into cash without any significant loss of value.

Illiquid asset: An illiquid asset refers to the asset that cannot be converted easily and quickly into cash without any loss of value.

Answer 7

Chapter 13, Problem 1CQ

To determine

Illiquid assets and rank them from most liquid to illiquid.

Answer 8

Expert Solution & Answer

Explanation of Solution

The liquidity of an asset refers to its ease and quickness in converting itself into cash without any significant loss in value. Cash in hand, cash at bank, short-term investments, high grade bonds, and stocks are some of the examples of liquid assets.

On the other hand, illiquid assets cannot be converted easily and quickly into cash without any loss in the value. Assets such as land, houses, a family-owned business, business equipment, and artistic works are some of the examples of illiquid assts.