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The Ultimate Liquid Assets Quiz
by Staff
Financial planners recommend that you monitor your liquid assets and update their value on a regular basis. Have you done your homework so that you know where you stand if you have a sudden financial crisis or just need some quick cash? Take this quiz to make sure you know where to find some easy money.

How can an understanding of liquid assets help you?

  • You know how much you can spend.
  • You know what your possessions are worth.
  • You assess your financial situation.

What is a simple definition of liquid assets?

  • Liquid assets are cash on hand, the balance in checking accounts and savings account balances.
  • Liquid assets are valuables that can easily be converted if you need money quickly.
  • Liquid assets consist of stocks and bonds that can be converted to cash.

What characteristic does an asset have to have in order to be considered liquid?

  • Liquid assets are cash on hand, the balance in checking accounts and savings account balances.
  • Liquid assets are valuables that can easily be converted if you need money quickly.
  • Liquid assets consist of stocks and bonds that can be converted to cash.

How would you measure a corporation’s liquidity?

  • A corporation’s liquidity is a measure of assets available for short-term investment.
  • A corporation’s liquidity is a measure of how well it can meet obligations.
  • A corporation’s liquidity is a measure of how quickly financial decisions are made.

What is a common scenario where it would be extremely helpful to know what you have for available liquid assets?

  • You sign a prenuptial agreement.
  • Your kids start high school.
  • You are fired.

How many months of comfortable living should your liquid assets be sufficient to cover if you end up with no income?

  • three months
  • six months
  • nine months

What are good examples of typical liquid assets?

  • checking accounts, savings accounts and money market accounts
  • mutual funds, bonds and stocks
  • both of the above

What is one asset that people often mistake as liquid that is actually a fixed asset?

  • a house
  • an IRA
  • a certificate of deposit

What other items can be considered as a liquid asset if they meet certain criteria?

  • collectables and antiques
  • animals and sports items
  • both of the above

What venue has helped move many items out of a fixed asset category and into a liquid asset category?

  • the Internet
  • community yard sales
  • large flea markets

What must a company do to keep their shareholders and stock analysts happy?

  • Companies must keep current assets at a low level compared to liability.
  • Companies must maintain a healthy level of liquidity.
  • Companies must try to maintain reasonable levels of inventory.

What additional item is considered a liquid asset for a business but is not considered a liquid asset for any individual?

  • outstanding stocks options
  • pending bond releases
  • loan options

What is a term commonly used to classify a business’s liquid assets still available once they pay off their current debts and liabilities?

  • excess liquid assets
  • net liquid assets
  • dispensable liquids

What do companies call a market condition where it is difficult to sell assets at a profitable price?

  • a bear market
  • a dry market
  • a thin market

What is considered to be the most reliable market for liquid assets?

  • hedge funds
  • Forex
  • the stock market