What are liquid assets?

Answer:
Liquid assets are a type of financial resource utilized

by investors, suppliers, and consumers. Cash is the most common form of liquid assets but they can also consist of something that can quickly and easily be converted to cash, within a set time period, usually twenty days or less. Liquid assets are generally regulated by the government of whichever country you are located in.

Currency that is legal tender is the most easily recognizable form of liquid assets. In addition, money in accounts such as savings or checking accounts are classified as liquid assets, since the accountholder can immediately access and withdraw the funds. Some other accounts, such as bond funds and money market accounts also count as liquid assets. Some forms of liquid assets are not quite as clear-cut. For example, some mortgages are considered liquid assets while others are not. The same applies to financial court settlements and tax refunds.