Which of the following would increase your liquid assets?
A) Buying a new car
B) Making regular deposits to a savings account at your bank
C) Buying rental property
D) Putting more of your salary into a retirement account

Question

Quizplus · Accepted Answer

Liquid assets are cash or assets that can be quickly converted to cash without significant loss in value. Making regular deposits to a savings account increases your cash reserves, thus increasing your liquid assets. Buying a new car, purchasing rental property, or putting more money into a retirement account does not increase liquid assets, as these actions either tie up cash in non-liquid assets or in accounts that are not easily accessible without penalties or selling.

Which of the Following Would Increase Your Liquid Assets