Final answer:
The student's scenario suggests that cash is decreasing and patience is increasing or being tested, but commonly, decreased cash leads to decreased patience over time. Liquidity is a concept tied to money availability and cash is the most liquid asset.
Step-by-step explanation:
The student has described a scenario where 'Cash is running low and patience is working.' This description suggests that cash is decreasing, and 'patience is working' implies a strain on patience, likely due to the decreasing cash, which could indicate that patience is also being depleted, albeit slowly. Therefore, within the given options, the situation is best described by option 2) Cash is decreasing and patience is increasing. However, the phrase 'patience is working' can be understood as patience being utilized to cope with the situation, which could imply that patience is actually increasing as it is being tested. Yet, the depletion of cash often leads to diminishing patience over time, so the situation still implies a decrease in cash and an eventual decrease in patience if the situation persists.
When we consider the concept of liquidity, cash as a form of money is extremely liquid because it can be used immediately to purchase goods and services. Checks and credit cards also serve as forms of money, but they are less liquid because they require additional steps or processing time to be converted into cash for transactions. This is relevant because it highlights the importance of cash availability for immediate financial needs.