You Should Maintain Just Enough Money in Liquid Assets to Satisfy

question 18

True/False

You should maintain just enough money in liquid assets to satisfy your liquidity needs then you can earn a higher return on your other assets.

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Definitions:

Promissory Note

A written promise to pay a specified sum of money to a designated person or the bearer at a specified date or on demand.

Negotiated

Negotiated refers to having discussed and agreed upon terms or conditions through a process of bargaining or dialogue between parties.

Holder

The person in possession of a negotiable instrument.

Cheques

Written orders directing a bank to pay a specified sum of money from the writer's account to the person or entity named on the cheque.