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Personal Finance: Cash or Liquid Asset Management
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Liquid assets differ from non-liquid assets, such as property, vehicles or jewelry, which can take longer to sell and therefore convert to cash, and may lose value in the sale.

Some Examples of liquid assets:
Cash or currency: The cash you physically have on hand.
Bank accounts: The money in your checking account or savings account.
Accounts receivable: The money owed to your business by your customers.
Mutual funds: A fund that pools money from many different investors into a diverse portfolio.

Personal Finance: Cash or Liquid Asset Management
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25 Questions

1. Your bank may offer a line of credit, a credit card, or a link to your savings account to cover transactions when you overdraw your account.
2. What are short-term notes of debt issued by the federal government commonly called?
3. With online banking, you are able to access your accounts and conduct business transactions through the Internet, your mobile phone, and devices.
4. Which of the following characteristics apply to liquid assets?
5. Your bank, First Bank, charges you $1.50 every time you use an ATM that is not owned by them- Unfortunately, there is no First Bank ATM near your school- There is a Second Bank ATM in the Student Center, which you use several times a week to withdraw $10 at a time for lunch, video games, etc- What is the best piece of advice regarding these transactions?
6. Which of the following is an advantage of online and mobile banking?
7. Overdraft protection is an automatic loan made to your checking account whenever your account does not contain enough cash to cover the checks that you have written against it.
8. A savings alternative that pays a fixed rate of interest while keeping your funds on deposit for a contracted period of time that can range from 30 days to several years is called a
9. Nondeposit-type financial institutions are commonly referred to as mutual funds and brokerage firms.
10. When you automate your savings you are less likely to spend those dollars because they never become part of the funds in your checking account.
11. The deregulation of the 1980s has allowed brokerage firms to offer traditional banking services, and has also let banks offer services formerly found only at investment companies.
12. A debit card is the same thing as a smart card.
13. The ________ converts interest rates compounded for different periods into comparable annual rates, allowing you to compare interest rates easily.
14. When you are considering different investment options and want to maximize your returns, be sure to compare the investments'
15. Virginia Tech's Hokie Passport is an example of a smart card.
16. One of the advantages of T-Bills is that they are exempt from federal taxes but subject to state income taxes.
17. It is best for college students to wait and begin saving once they are 'making more money.'
18. A tax free investment will always have a higher after-tax return than a taxable investment.
19. NOW accounts offer an option to traditional demand deposits- All of the following are characteristics of NOW accounts except one- Which is it?
20. Suppose that you go to a bank at which you have no account, give the bank cash, and in return obtain a check drawn against that bank which you will use to pay someone else- This is called a
21. Cash and investments that can be easily converted into cash are termed
22. Four banking conveniences are listed below- Which one is not typical?
23. Which of the following is not a common fee arrangement for checking accounts?
24. Online banking simplifies cash management and budgeting for consumers.
25. A debit card, also known as a memory card, can hold ID information, insurance information, and medical history.

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