For example, if you have $10,000 in liquid assets and your monthly expenses total $2,000, your liquidity ratio is 5.0. Therefore, you can live off your cash reserves for roughly five months.

Examples of liquid assets may include cash, cash equivalents, money market accounts, marketable securities, short-term bonds, and accounts receivable. Why Are Net Liquid Assets Important.

Both liquid and non-liquid assets of various types can fill specific roles in your investment portfolio. Knowing their differences, as well as when and how to use each one, can help improve your ...

The following are examples of non-liquid assets: Real estate. It often takes weeks or months to close a sale on a residential or commercial property.

For example, in school you may have learned that molecules within a solid are tightly packed together in fixed positions, whereas those in a liquid move more freely around one another. On ...

Liquids are one type of fluid. Now, you might be objecting: But, the TSA didn’t call peanut butter a fluid, they said it’s a liquid! Fluids are divided into two general categories: gases and ...