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Cash & Cash Equivalents

As a finance professor, it is important to understand the concept of liquid assets, which refers to cash in bank and securities that can be easily converted to cash within a short period of three months or less. These assets play a crucial role in maintaining financial stability and liquidity for individuals and businesses alike. It is essential to have a diversified portfolio that includes liquid assets to mitigate potential financial risks and ensure financial flexibility. By being knowledgeable about liquid assets and their importance, we can make informed decisions to safeguard our financial well-being.
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