0
What are the disadvantages of having too much or too little money held as liquid assets?
Wiki User
∙ 11y ago
Disadvantages of having "too much" $ held as a liquid asset:
1. No profit & lost investment opportunity. If $ is held in a non-interest bearing account, no interest will be earned--no interest earn = no profit--no profit = lost investment opportunity.
2. Low return on investment. If the $ was invested in a low interest bearing account, then low return on investment would be realized. Since not all investments have the same rate of return, there is also an opportunity cost (the $ could have been invested in a different investment at a higher return).
Disadvantages of having "too little" $ held as a liquid asset:
1. In options trading, it could result in greater loss when the market dips & your options are liquidated to pay for the dip, rather than if you have the $ in your account & that could have been used to potentially carry your investments over until more profitable conditions occurred.
2. If you need $ for an emergency & you don't have it, you have an undesireable condition occur that wouldn't have occurred if you have the $ or credit available to pay for the emergency.
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
What are the possible benefits and drawbacks to having a very large country?
The benefits to having a large country is having good marketing. The disadvantages is having little space.
What does indigent person mean?
"Indigent" means having little or no income or assets. "Indigenous" means native to the area.
What were the disadvantages of going to war with the south?
The south had little factories and very few routes for travel and having little amounts of guns and ammunition
Is alocohol liquid or gas?
A little of both, but mostly liquid at room temp.
What are the disadvantages of living in a tourist attraction?
The disadvantages of an individual living in a tourist attraction is more traffic; people and little privacy at times.
What were the political disadvantages of the Burma Road Riot in the Bahamas in 1942?
political disadvantages was that their was little or no black politician's or anyone of them within the government
What happens to the assets of a beneficiary's estate with a will?
The question is asked a little awkwardly. Most people intend to ask how the deceased individuals assets are dealt with not the recipients/beneficiaries. However, the assets of a beneficiary's estate should increase since they are receiving assets from a deceased individual. Also, if a beneficiary is deceased their assets, including any inheritance, will pass to their own beneficiaries under the terms of their will.
What are the advantages and disadvantages of sign language?
Advantages of sign language include its ability to provide communication access for deaf and hard of hearing individuals and its visual nature. It also allows for expression through facial expressions and body language. However, a disadvantage is that not everyone knows or understands sign language, which can result in communication barriers in certain situations.
What are the advantages and disadvantages of a laptop?
Some advantages of a laptop would be that they are small potable usually have built in wifi receiver and they are perfect for browsing the web, some disadvantages are that they are usually a lot slower than desktops, they have less hard drive room and they are a little more fragile in general
How much mass does liquid have?
As much or as little as you want.
What temperature is helium a liquid?
The boiling point is a little over 4 Kelvin; that is, at lower temperatures it is a liquid.
What are the disadvantages of purchasing jasmine flowers?
Although extensive research has been done there is little information regarding disadvantages of purchasing Jasmine flowers. The only disadvantages that can be associated are possible allergies to the pollen from the Jasmine flower.
