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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. For a consumer who does not have a checking account a prepaid debit card is a means of paying for goods and services.
2. One of the advantages of T-Bills is that they are exempt from federal taxes but subject to state income taxes.
3. Two advantages of carrying cash are that it's easy to spend and many times you can even recall where you spent it.
4. One way to think of liquid assets is as a reservoir, with money moving in as wages are received and moving out as living expenses are paid.
5. Online banking simplifies cash management and budgeting for consumers.
6. The National Credit Union Association is a federal agency that insures deposits at credit unions.
7. 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.
8. Money market mutual funds provide attractive competition for bank deposits because
9. A debit card is the same thing as a smart card.
10. When you are considering different investment options and want to maximize your returns, be sure to compare the investments'
11. What are short-term notes of debt issued by the federal government commonly called?
12. Credit unions and Internet-only banks typically offer more attractive interest rates to both borrowers and savers.
13. one way to think of liquid assets is as a(n)
14. 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
15. The interest rate earned on a money market deposit account is generally higher than the interest earned on a Bank savings account.
16. What is the name for 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?
17. Liquid assets or funds are important to
18. 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
19. You have $5,000 in a 36 month Certificate of Deposit that has an APR of 3.75%- If inflation averages 4.25% during these 36 months, what is the real return on your CD?
20. A money order is typically less liquid than a personal check.
21. Brick-and-mortar banks typically offer superior interest rates for borrowers and savers.
22. 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?
23. It is best for college students to wait and begin saving once they are 'making more money.'
24. What is the name of an investment company that raises funds from investors, pools the money, and invests in stocks or bonds?
25. With online banking, you are able to access your accounts and conduct business transactions through the Internet, your mobile phone, and devices.

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