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 in a 401(k)

Question

Quizplus · Accepted Answer

Making regular deposits to a savings account at your bank would increase your liquid assets as it would increase the amount of money readily available to you.

(Note: A, C, and D would not increase your liquid assets. Buying a new car would actually decrease your liquid assets as it would tie up a significant amount of your money in a non-liquid asset. Buying rental property and putting more of your salary in a 401(k) would both increase your overall wealth, but these assets are not liquid as they are not easily or quickly converted into cash.)

Which of the Following Would Increase Your Liquid Assets