Question 1
Purposes of managing liquidity include all of the following
except
◦ determining how to keep the majority of your assets in liquid form.
◦ having enough liquid assets to cover cash shortages.
◦ maintaining adequate liquidity to avoid borrowing every time you need money.
◦ maintaining just enough liquid assets to meet your needs.
Question 2
Which of the following assets will
not increase your liquidity?
◦ Checking account
◦ Money market mutual fund
◦ Cash in a traditional IRA
◦ Cash in your wallet
