Question

Liquidity of savings refers to ____.

a.
availability of your funds on short notice
b.
earning potential of savings
c.
security or safety of funds on deposit
d.
tax-free accumulation of savings

Answer 1

Liquidity of savings refers to A. AVAILABILITY OF YOUR FUNDS ON SHORT NOTICE.

Liquidity is the terms used to describe how assets can easily be converted to cash.

The most liquid asset is cash because it is easily available for use as payment in any business transactions.

Answer 2

Answer: a. availability of your funds on short notice

Liquidity of savings refers to availability of your funds on short notice.

Explanation:

Liquidity of savings means the availability of cash in order to meet immediate and short-term obligations or operating needs. Cash is the most liquid asset. Some investments can easily be converted to cash like stocks and bonds because they are very liquid. They can be converted to cash within days and as a result, they are known as liquid assets.