What would the world be like without money?
Why is life so hard without money?
Money is certainly not one of the basic necessities of a sustainable life, but it is so important that we cannot live without it. It is the only effective way to estimate the cost of basic needs such as food, clothing, and shelter, and it is the only sure way to find their true value.
Why do we need money to live? Money allows us to meet our basic needsâ to buy food and shelter and pay for health care. This may interest you : How can I double my money in 3 years?. Meeting these needs is essential, if we do not have enough resources to do so, the well-being of the individual and the general well-being of the community will suffer greatly.
Which source of money is the most liquid?
Cash and Cash Equivalents Cash is the most liquid asset possible since it is already in the form of money. This includes physical cash, savings account balances, and checking account balances. It also includes cash from foreign countries, although some foreign currency may be difficult to convert into additional local currency.
What are liquid assets? Cash is your most liquid asset because you don’t need to take any extra steps to convert it – it’s already cash. You can use it to pay immediately for an item or service and also use it to settle your outstanding debts. To see also : What is the 7/10 Rule investing?. Cash is usually held in checking accounts, savings accounts or money market accounts.