Purposes of managing liquidity include all of the following, except
A) determining how to keep the majority of your assets in liquid form.
B) having enough liquid assets to cover cash shortages.
C) maintaining adequate liquidity to avoid borrowing every time you need money.
D) maintaining just enough liquid assets to meet your needs.

Question

Quizplus · Accepted Answer

The primary purpose of managing liquidity is not to keep the majority of assets in liquid form, as this could lead to missed opportunities for higher returns from less liquid investments. The goal is to balance having enough liquid assets to cover short-term needs without unnecessarily sacrificing potential returns from longer-term, less liquid investments.

Purposes of Managing Liquidity Include All of the Following, Except