Chapter 10 personal finance answers 2025

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Cash is the most liquid asset possible. This includes physical cash, savings account balances, and checking account balances.
ing to Investopedia, Personal finance defines all financial decisions and activities of an individual or household, including budgeting, insurance, mortgage planning, savings and retirement planning. Understanding these terms can help you better control your funds and prepare for future financial success.
Cash is most liquid asset because it is used for buying and selling goods and services instantly without losing its own value.
Money Supply Measure M1 M1 consists of the most highly liquid assets. That is, M1 includes all forms of assets that are easily exchangeable as payment for goods and services. It consists of coin and currency in circulation, travelers checks, demand deposits, and other checkable deposits.
Liquid asset definition The most liquid asset is cash, either in a bank account or money market fund. Stocks are also considered to be a very liquid asset, though it might take a few days for your stock sale to settle and to get the money from your account.
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Tax liability is the amount of tax debt owed to a government by an individual, corporation, or other entity. Income taxes, sales tax, and capital gains tax are all forms of tax liabilities.
Some common additional deductions that can affect net pay are: Federal income tax withholdings. State income tax withholdings. Social Security, Medicare taxes, and payroll taxes, like the Federal Insurance Contribution Act (FICA) and the Federal Unemployment Tax Act (FUTA)
Cash on hand is the most liquid type of asset, followed by funds you can withdraw from your bank accounts. No conversion is necessary if your business needs a cash infusion, you can access your funds right away.

chapter 10 lesson 4 filing your taxes